How Super Retail Group’s New Loyalty Program Is Driving Sales Growth
Super Retail Group reported a solid 4.5% sales increase in FY25, driven by network growth and new loyalty initiatives, while navigating margin pressures and investing heavily in omni-channel capabilities.
- Total sales rose 4.5% with 2.6% like-for-like growth despite challenging conditions
- Launched Supercheap Auto’s new 'Spend & Get' loyalty program replacing Best Price Credit
- Expanded store network by 23 net stores, with 782 stores across four brands
- Normalised profit before tax declined 3.9% to $329.4 million amid margin pressures
- Declared fully franked final dividend of 34 cents plus a special dividend of 30 cents
Steady Growth in a Tough Retail Climate
Super Retail Group has delivered a commendable performance for the full year ended June 2025, reporting total sales growth of 4.5% to $4.07 billion and like-for-like sales growth of 2.6%. This growth came despite a challenging consumer environment marked by cautious spending and competitive pressures. The group’s ability to accelerate sales momentum in the second half of the year, particularly across Supercheap Auto and Macpac, underscores resilience in its core brands.
Loyalty Programs and Omni-Channel Investments Drive Engagement
A key highlight was the full embedding of the rebel Active loyalty program and the launch of Supercheap Auto’s new “Spend & Get” loyalty scheme in July 2025. This new program replaces the previous Best Price Credit and promises a more generous and straightforward reward system, expected to stimulate customer visitation and spending without impacting gross margin. The group reported a rise to 12.5 million active club members, who now account for nearly 80% of total sales, reflecting strong customer engagement and loyalty.
Network Expansion and Store Refurbishments
Super Retail Group expanded its store network by a net 23 stores during FY25, ending the year with 782 stores across Australia and New Zealand. This growth was supported by targeted store openings and refurbishments, including flagship store upgrades such as rebel’s rCX store in Bondi Junction. The group’s strategic investment in store formats and regional expansion has contributed to improved sales density and sustained revenue growth.
Profitability and Margin Pressures
While sales grew, normalised profit before tax declined by 3.9% to $329.4 million, with a 70 basis point contraction in PBT margin to 8.1%. Margin pressures were attributed to strategic investments in network expansion, loyalty programs, and elevated stock loss, partially offset by marketing savings and gross margin improvements in some segments. The group maintained a strong net cash position of $63 million and declared a fully franked final dividend of 34 cents per share, alongside a special dividend of 30 cents, reflecting confidence in cash flow generation.
Looking Ahead – FY26 and Beyond
Early trading in FY26 is positive, with like-for-like sales growth of 3.1% in the first seven weeks. The group plans to invest $155 million in capital expenditure, focusing on store development, completion of the new Victorian distribution centre at Truganina, and technology enhancements including cyber and omni-channel capabilities. However, FY26 will also see increased project costs related to system upgrades and distribution centre transitions, expected to weigh on operating expenses.
Bottom Line?
Super Retail Group’s FY25 results reflect steady growth and strategic investment, but margin pressures and elevated costs signal a cautious watch for FY26.
Questions in the middle?
- How will the new 'Spend & Get' loyalty program impact customer spending patterns and margins over the medium term?
- Can Super Retail Group sustain margin improvements amid ongoing network expansion and elevated operating costs?
- What are the risks and opportunities associated with the phased opening of the new Victorian distribution centre?
