Super Cheap Auto's sales rise

Retailer Super Cheap Auto Group yesterday said its first-half group sales had grown by 14.3 per cent to A$264.7 million ($290.3 million) compared with last year's first half despite continuing tough retail conditions.

But like-for-like sales growth fell by 0.5 per cent, weighed down by a 7.7 per cent drop at its New Zealand stores and a 0.2 per cent rise in Australia.

Super Cheap managing director Bob Thorn said second-quarter sales were in line with its first-quarter result after stronger growth in October and November, but mixed performance during December.

"We continue to meet our targets in expanding our network of Super Cheap Auto stores but like-for-like sales growth during the half was held back as a result of the continuing difficult retail conditions."

Thorn said many customers delayed their shopping until the last few days before Christmas Day and a quiet post-Christmas period resulted in unprecedented discounting.

"We are particularly pleased that despite these tough retail conditions, we have been able to maintain margins and reduce our inventory investment whilst improving our in-stock position in store."

Super Cheap Auto opened 14 new stores and moved one existing store during the half, lifting total numbers to 225 in Australia and New Zealand.

The result comes as the firm continues to roll out its boating, camping and fishing (BCF) retail concept, which was launched on October 15.

During the 26-week period ending December 31, three of the four stores it acquired from CampMart were rebranded as BCF stores, while the fourth store was rebranded and moved to more suitable premises at the start of December.

"This was a business that did not even exist at the start of the year and yet by the end of the year we have established 12 stores that are all trading very strongly," Thorn said.

"Although, we need to monitor sales during the balance of the financial year to fully understand the seasonality of the business, we are confident that we can increase our sales expectations for BCF for the 2006 financial year by at least A$5 million to A$45 million."

Meanwhile, Super Cheap also announced Thorn's resignation. He will be replaced by chief financial officer Peter Birtles at the end of this month.

Thorn will pursue "personal interests" after more than 13 years as the chief executive and managing director of the group.

Super Cheap reported a net profit before non-recurring items of A$17.3 million in 2004/05, 31.1 per cent higher than the previous period.

- AAP