Briscoe 'smartening up' moves lift sales

Chief executive Rod Duke says Briscoe Group's focus on quality, not just lower prices, has helped drive sales. Photo / Paul Estcourt

Briscoe Group's boss says a "smartening up" of merchandise and changes to its advertising strategy are helping drive sales increases at the listed retailer.

Despite a late start to winter, the company - which operates Briscoes and Rebel Sport stores - yesterday reported a 4.8 per cent lift in second quarter unaudited revenue to $97.8 million, compared with the same period last year.

On a same-store basis, group sales for the 13 weeks to July 31 were up 8 per cent, the company said.

Managing director Rod Duke said this week that winter's late arrival had forced the company to heavily discount stock brought in for the season.

But yesterday he said sales were also being driven by a new approach to advertising campaigns, which placed more focus on brand names and quality rather than "just shouting the price".

"We sell all the top brands, and we sell them cheap, so we've put a bit more emphasis on that," he said. "While times are still difficult out there, we're actually finding that there's been a bit of flight to quality."

Duke said the company had introduced some more high-end, better quality merchandise to its stores.

"But at the same time we've been conscious that our prices have got to be really sharp," he said. "Because the customer is really discerning."

The firm said sales in the group's homeware segment increased by 4.2 per cent, while its sporting goods segment revenue rose 6.3 per cent.

The firm said the figures for the second quarter took unaudited group sales for the half year to $194.1 million, a 2 per cent increase on the first six months of last year.

An analyst said the group's increase in revenue showed it was taking market share off other major retailers, such as The Warehouse.

Half-year net profit after tax for Briscoe Group was anticipated to be at least $10.2 million - a 10 per cent increase on the previous year's adjusted interim result, Briscoe Group said.

Duke said there had been pressure on gross profit during the quarter, due to competitive market pressures and the need to control inventory.

But the firm was pleased with the overall sales performance, which had been delivered on the back of a strong promotional programme.

"Notwithstanding the continued tough operating conditions, group ebit (earnings before interest and tax) has tracked above last year during this first half and we expect this to be reflected in our results for the half year," he said. "Sales and gross profit will be up on last year and costs have been well managed during this first six months."

Shares in Briscoe Group closed yesterday unchanged at $1.43.