Super Retail Group Reports Increased Crime, Theft Impacting Profit Margins

‘An elevated level of stock loss, attributable to theft, has impacted gross margins,’ Super Retail Group said.
Super Retail Group Reports Increased Crime, Theft Impacting Profit Margins
Shoppers walk down the Royal Arcade in central Melbourne, Australia, on Oct. 27, 2023. Susan Mortimer/The Epoch Times
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A major Australian and New Zealand retailer has shed light on the impact of crime on the profit margins of the company.

Super Retail Group, headquartered in Queensland, boasts major brands including Rebel, Supercheap Auto, Boating, Camping and Fishing, and Macpac.

Discussing the performance of sporting goods retailer Rebel, Super Retail Group revealed theft had impacted profit margins, despite solid sales growth.

“Rebel reported a solid 4.8 percent sales growth in FY25, with 3.5 percent like-for-like growth. Rebel’s sales momentum was supported by improved ranging, particularly in footwear, investment in stock availability, and a return to growth from the sporting equipment categories,” the company said in an annual report released Aug. 21 (pdf).

“An elevated level of stock loss, attributable to theft, has impacted gross margins during the period and is a key focus of management as we enter FY26.”

The company also raised concerns about retaining staff in stores due to retail crime and theft.

“Attracting and retaining talent in stores remains a challenge, with an increased risk of retail crime, theft, harassment and aggressive customers. These risks can contribute to a higher turnover of team members,” Super Retail Group stated.

In the risk management section of the report, Super Retail Group said they were strengthening security to deal with theft and crime, and aggressive customers

“This involves enhancing team training and maintaining close collaboration with law enforcement,” Super Retail Group added.

Super Retail Group also reported (pdf) the company’s online sales had risen by 8.2 percent to $524.3 million, representing 12.9 percent of total sales. While this figure was slightly higher than the 2023 and 2024 financial years, they were lower than the 2022 result.

Supercheap Auto achieved $1.5 billion worth of sales, rising by 2.1 percent and driven by network expansion, with 11 newly opened stores.

As for Rebel, total sales increased by 4.8 percent to $1.4 billion.

“Growth was broad-based, with strong contributions from footwear and licensed apparel, women’s apparel and fitness tech. Sporting equipment categories returned to growth after a period of consolidation,” Super Retail Group reported.

“Cost of doing business as a percentage of sales declined by 60 bps due to moderated investment in advertising (enabled by loyalty) and efficiencies from store closures.”

Boating, Camping and Fishing (BCF) generated record sales due to higher transaction volumes. There was strong growth in the fishing and touring categories. Club members made up 91 percent of these total sales.

“Favourable weather conditions during key peak periods also supported growth,” the company said.

Meanwhile, outdoor brand Macpac recorded a 3.8 percent boost in sales to $231 million. Macpac, an original New Zealand brand, also achieved market share gains in Australia.

Ten new stores opened in the financial year, including a premium store in Christchurch.

Financial Results

Super Retail Group reported a net profit after tax (NPAT) of $221.8 million in the 2025 financial year, falling 7.6 percent on the previous financial year.

The company’s sales increased 4.5 percent to nearly $4.1 billion.

The board has decided to pay a fully franked ordinary dividend of 34 cents per share. The full-year dividend total is 66 cents per share.

In addition, the company will pay a fully franked special dividend of 30 cents per share.

Commenting on the results, Chief Executive Officer Anthony Heraghty said the company achieved a year of strategic execution and financial resilience.

“Financially, we delivered another record top-line performance with Group sales rising 4.5 percent to $4.1 billion. This result reflects the loyalty of our customers to our market-leading brands and the effective execution of our business strategy.

Heraghty also reflected on the challenge of inflation, energy costs and the cost of doing business.

“Managing inflationary pressures has been a key challenge in 2025, with our Normalised Cost of Doing Business (CODB) increasing by 4.5 percent due in part to rising costs from wages, rents, and energy.”

“An important element of the higher CODB was the ongoing investment in our network, which we are confident will benefit our performance in the years to come.”

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Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media. She can be reached at monica.o'[email protected]