Super Retail Group's (ASX:SUL) new five-year strategy is focused on store network expansion and category growth, according to Citi analyst Adrian Lemme, the Australian Financial Review reported Thursday.
The retailer is increasing its store target to more than 900 by 2031, above consensus expectations of 842, from 790.
Lemme said growth drivers would include Supercheap Auto's range expansion and fit-out capabilities, Rebel's regional store rollout and private label push to around 20%, BCF's superstore expansion and 4WD fitment, and Macpac's ongoing investment in network and brand development, per the report.
While Super Retail Group's "Ignite" cost program is expected to deliver about AU$75 million a year in savings by fiscal 2029, it will incur implementation costs of roughly AU$30 million a year in the next three years, with total annual capital expenditure set at about AU$150 million.
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