Australian clothing retailer Macpac is planning to open ten new stores over the next financial year, as brand awareness increases through its sister stores.
Macpac opened ten new stores over the last financial year with one closure, bringing its total store network to 85 across Australia and New Zealand.
Super Retail Group CEO Anthony Heraghty said the new openings are supported by increased brand awareness, arising from extending product supply to the Group’s other retail chains – BCF and Rebel.
According to the Group’s annual report, this product supply trial began in 2020, where Macpac ranges were sent to four Tasmanian BCF stores during winter.
This led to the FY22 rollout of Macpac into 44 southern stores, supported by expansion in hiking, bushwalking and cold climate camping ranges.
Through its supply to the Group’s other retail chains, Macpac product sales in that area grew by 95% in FY22. This has contributed to a stronger brand awareness throughout Australia, affording Macpac to open more stores.
Within its increase in sales to $177 million, driven by winter demand, the vast majority came from in-store sales (77%), with 19% via home delivery and 4% through click and collect.
Over FY22, Macpac’s online sales grew by 35% to $40.8 million, with click and collect comprising of 17% of total online sales.
Like-for-like sales were up 4.4% overall and 8.5% in the second half. The second half increase was driven by a 12.4% increase in Australian sales where colder and wetter than usual weather patterns saw strong growth in rainwear and insulation apparel.
“The record sales results in both in-store and online transactions reinforces our confidence that we have the right omni-retail model to survive and thrive in the years ahead,” said Heraghty.
“While in-store sales continue to dominate our transactions, it is clear that over the long term the online sales growth trend will continue.
“Importantly, we are now well positioned to capitalise on this ongoing channel shift thanks to our sustained investment in our digital capability.”
In other areas, segment normalised PBT was up 10.1% to $18.6m (down 1.9% adjusted to 52 weeks). Trading margins were lower in the first half as a result of the lower sales intensity, with margins improving in the second half due to a lift in sales intensity and higher mix of Australian sales which operate at a higher margin contribution.
Across the Tasman Sea, New Zealand operations saw a reduction in like-for-like sales of 6.5% due to the impact of COVID-19 and reduced tourism and travel.
Regarding its active club membership, Macpac saw a 22% growth over FY22, with 72% of total sales coming from its active club members. Its overall membership count is 600,000.
Community and sustainability
Since 2018, Macpac’s Fund for Good initiative has strengthened local communities across Australia and New Zealand through financial aid and providing Macpac apparel and equipment.
The fund supports not-for-profit organisations focused on environmental initiatives, education, and Indigenous community projects working in these areas.
During FY22, the fund awarded grants to more than 20 charitable organisations committed to community good, including Save the Kiwi, Youth Inc, and WAI Wanaka.
So far, the fund has granted $253,452 to various charitable organisations.
As well as providing funding, Macpac continues to donate used gear to charitable organisations. For gear that is faulty, however, Macpac has partnered with Offtrack’s 2nd Life Project and Upparel.
Macpac customers can support the Fund for Good by purchasing Fund for Good products or by refusing an in-store retail bag. Every time a bag is refused, Macpac contributes $0.20 to the Fund for Good.
Just under 1 million bags have been refused through Macpac’s ‘Refuse a Bag’ program since it was launched in 2018
As well as this, 56,751 pairs of shoes were recycled through rebel and Macpac’s in-store collection.
In August 2021, Macpac was recognised as the National Retail Association’s 2021 Sustainability Champion of the Year for its commitment to positive corporate citizenship.
The award celebrates businesses who lead the way in improving environmental awareness to employees and customers, sustainable forward thinking, and reduction of waste.