Super Retail Group Cancels Dividend Despite Positive Sales Momentum
The statement published on the ASX this morning read: “In the present environment the Board believes that preserving cash is the most prudent course of action to maintain liquidity and protect shareholder value.”
Super Retail Group also suspended its dividend reinvestment plan.
So far, however, sales at the group’s stores have registered steady growth. “Across the Group, there has been an increase in demand for essential and self-sufficiency products,” the ASX statement read.
In-demand items – primarily at Supercheap Auto and BCF stores – have included portable gas and fuels, camping stoves, batteries, gas refills, generators, refrigerators, hygiene products, water filters, portable toilets and solar energy panels.
Rebel’s apparel sales have been negatively impacted, but there have been more sales in personal fitness and gym equipment following the government’s closure of gyms across Australia earlier this week. ChannelNews reported on empty shelves at Rebel earlier this week.
For now, all of the group’s Australian stores continue to trade and online services in Australia are still available. The group has also said its supply chain in Australia is functioning normally.
On the 23rd of March 2020 the group’s 45 Supercheap Auto stores and 36 Macpac stores in New Zealand were closed for at least four weeks, on government directions. New Zealand only represents 7% of group revenue.