Rebel is set to increase its 155-store portfolio in 2023, with a keen focus on strengthening customer experience through its rCX format stores.
Following the opening of three new stores this year, Super Retail Group (SRG) CEO Anthony Heraghty confirmed Rebel will open five additional rCX stores in FY2023.
This comes as the company recorded a 1.3% increase in sales to $1.21 billion for FY2022, which Rebel puts down to increased contribution from its rCX format stores, where in-store sales make up 78% of total sales.
In comparison, online sales grew by 39% to $268 million, representing 22% of sales, with Click & Collect comprising 41% of online sales.
Speaking on Super Retail Group’s entire network, Heraghty said the value of stores was strong despite the growth in online sales.
“Our store network remains fundamental to the shopping preferences of our customers,” Heraghty said. “More than nine in every ten transactions involved our store network, through either over-the-counter sales or Click & Collect.”
Rebel’s rCX format is designed to encourage customers to test products and equipment in “physical experience zones” including half-court basketball, indoor football pitches and sports gaming consoles. Since launching the concept, it has delivered strong growth across Rebel’s eleven rCX stores.
In one instance, following the launch of Rebel’s largest rCX store in Highpoint in March 2022, the location showed strong year-on-year growth with sales increasing by more than 40% compared to the same period last year.
Another example is the launch of rebel’s first flagship rCX store in Adelaide CBD in April 2022. Since its launch, the store has recorded significant sales growth of more than 80%.
The rCX store concept is also buoyed by longstanding partnerships with key trade partners such as Nike, Adidas, Under Armour, Puma, ASICS and New Balance, some of which include products exclusive to Rebel.
“With new stores, updated formats and a more expansive network delivering strong results across all brands, we continue to provide more of what our customers want and make them available in the formats that suit their preferences,” Heraghty said.
However, despite its recorded growths and expansions, past Covid lockdowns adversely affected first-half foot traffic within Rebel stores located in central business districts and larger shopping malls. On top of this, delays in inbound shipping reduced the availability of key product lines.
As a result of these delays, first-half sales were down 5.9%. However, as restrictions eased and Australians prepared to live with Covid, foot traffic recovered, supporting like-for-like sales growth of 0.5% in the second half of the year.
“The decision to proactively manage our inventory position in response to the supply chain challenges created by COVID-19 allowed us to be well stocked to meet rebounding consumer demand,” Heraghty said.
“We expect to see these inventory levels normalise as the impact of the pandemic wanes.
Segment normalised PBT was down 15.4% to $141 million for Rebel, driven by higher supply chain costs, increased promotional activity, ongoing stock availability issues and full year investment in strategic programs that were suspended in the first quarter of FY21.
The lowest area of growth for Rebel was in its active club members, with just a 2% increase to 3.3 million. The average active club member NPS is 62.
“Over the next two years, the Group will make a significant investment to leverage our first-party data by launching new loyalty programs, developing a customer data platform, and building our customer analytics," Heraghty said.
"This investment will enable the Group to make increasingly personalised offers to our customers utilising analytically driven data and insights."
Rebel’s club member sales represented 69% of total sales.