Super Retail Group is raising funds to improve digital customer experience and analytics capabilities to deliver growth in the COVID economy. The company said, “the Equity Raising will provide Super Retail with additional flexibility in a more uncertain economic environment.”
The Queensland based retailer which owns and operates Supercheap Auto, Rebel and other retail chains said it’s issuing 28.2 million shares under Equity Raising to raise funds for its digital initiatives.
In an investor update, SRG stated its strategy execution remains on track despite COVID-19 impact.
Last week online marketplace Kogan announced raising $100mn to fund potential acquisitions revealing investor confidence in the strategic plans.
The funds would fuel key investments in omni-retail capabilities, supply chain investments and simplification of the business model
SRG said its Omni-channel business strategy has enabled the business to adapt quickly to changing consumer behaviour during COVID-19 and has delivered a resilient trading performance”.
However, changing shopping behaviour meant a shift from catalogues to digital campaigns. Also, contact-free click & collect implementation was done across all Australian standalone stores.
Digital acceleration program implemented to focus eCommerce activity to manage significantly increased on-line volume and align offering with changing customer behaviour”
The new funding investment is expected to power:
- Omni-retail digital customer experience and analytics investments
- Supply chain investment to facilitate Omni-channel sales growth
- Further simplification of our business model
- Investment in footprint optimisation and organic market consolidation and share gain opportunities presented as a result of the COVID-19 disruption
Wesfarmers group announced strong second half sales amid the pandemic. The WA-based conglomerate revealed Bunnings and Officeworks recorded significant sales growth in its second half and credited its digital investments for the preparedness.
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