As Super Retail is forced to fend off multiple courtroom battles involving some of its most senior management including CEO Anthony Heraghty and outgoing chair Sally Pitkin, apart from it now facing a separate investigation by ASIC, a ‘soft’ sales update may now be the result of the company having to divert its attention to multiple fronts besides its core business.

As the company headed into its AGM on Thursday, its shares slid more than 3.5 per cent to trade at approximately the A$16.15 mark as it revealed its latest sales figures.

In the first 16 weeks of FY25, the company behind retailers Supercheap Auto, Rebel, BCF and Macpac has recorded 2 per cent like-for-like sales growth and 4 per cent total sales growth.

However, the company has said that sales had “demonstrably slowed in New Zealand”.

As reported by Trading Day earlier, analysts at E&P and Citi noted the ‘below expectations’ update that showed growing pressure on the group’s Supercheap Auto business.

 

“Competitive intensity has increased, requiring an increase in promotional activity,” the company said, adding the outlook for the consumer remained uncertain, given the ongoing cost-of-living pressures. “While inflation appears to be gradually easing, the group expects continued upward pressure on its cost base in FY25.”

The group plans to open 25 new stores in FY25 across the group with a larger investment in the first half.

Capex is targeted at A$165 million to fund its store development programme, a new distribution centre, enhancements to its customer loyalty programs and cyber, omni and digital capability.

For FY 24, total sales at Supercheap Auto, its biggest business, was recorded at A$1.5 billion up 3 per cent, while total sales at Rebel fell 1 per cent to A$ 1.29 billion over the same period. BCF sales increased 5 per cent to A$879 million, and Macpac sales grew 3 per cent to A$222 million.

 

At the AGM on Thursday, Pitkin told shareholders that the group has tried to resolve the issues involving two former executives-turned-whistleblowers before it went to court, but it was unable to reach a settlement.

In her opening statement, which she shared with the ASX, she noted, “While we are unable to discuss the proceedings, the Board has reviewed and investigated these matters with the support of independent external advisers. The Board’s review and investigations concluded that none of the allegations were substantiated and as we have told the market previously, we are vigorously defending against these allegations.”

Two former Super Retail executives – Rebecca Farrell and Amelia Berczelly – are in the midst of a workplace dispute in the Federal Court with their former employer.

The whistleblowers have alleged their former company as being a dysfunctional workplace amid claims of Heraghty having a secret affair with the former head of human resources, Jane Kelly. The women have also made accusations of bullying and victimisation.