Rebel were both up by eight per cent, reaching over $1.3 and $1.45 billion respectively, while BCF and Macpac sales increased by one per cent and 22 per cent. Meanwhile, the group’s statutory profit grew by 9 per cent to $263 million. However, the first six weeks of financial year 2024 has seen apparel sales in particular fall, with Supercheap Auto the only brand to experience like-for-like sales growth across its portfolio. Super Retail Group expects cost-of-doing-business as a percentage of sales to increase during FY24, with rising interest rates, inflation and cost-of-living pressures to also hit consumer spending.  Consumers still spending Heraghty told Inside Retail that the most interesting takeaway from Super Retail Group’s financial performance is evident in its second half, where it achieved like-for-like sales growth of six per cent. This, he said, was the first like-for-like period that wasn’t directly affected by the Covid-19 pandemic.  And, with relatively low unemployment levels, he contended that consumers are still able to spend – albeit not at the same levels as during the height of Covid-19. “There’s a consumer out there that’s very alive and well, and with the right proposition we should be able to activate the customer quite successfully,” Heraghty said. Although like-for-like sales have declined to start the year, he largely attributed this to the warmer winter weather which has hit apparel brands across the board. “I think if we compare and contrast it to our other categories which are performing quite strongly, [these results] are climatic. I wouldn’t necessarily call it out as related to macroeconomic factors.” While cost-of-doing-business are forecasted to increase in the coming year, the group’s new 65,000 sqm distribution centre – which has a five star sustainability rating and is scheduled to commence in financial year 2024 – is expected to reduce supply chain costs over time. Lining up for footy boots A standout for the Super Retail Group was Rebel’s performance sports category, which includes basketball and football apparel, merchandise and equipment. This has benefited from strong participation in grassroots sport, and events such as the Fifa Women’s World Cup which stimulated sales. Rebel is a partner of the Matildas – Australia’s national team – with the brand selling upwards of 60,000 Matildas jumpers during the World Cup campaign. Heraghty said that the Rebel team has been backing women’s sport for many years, with the brand identifying it as a strong area of growth. As a result, he explained that Rebel had successfully “put its money where its mouth is,” and is now reaping the benefits. “You can only sell 60,000 jerseys if you buy them. Relative to any other World Cup or sporting event, it was a significant stock commitment. It was carefully considered, and has been a net dividend. The Rebel team should be bloody happy with themselves,” he said. Anecdotally, he said that grass roots football enrolment across both genders is at an all-time high, and will continue to grow following the Fifa Women’s World Cup. “I think we’ll see both boys and girls lining up to get their footy boots as they start their journey to becoming the next Matilda or Socceroo,” he added. “That next generation is a big opportunity for us, and Rebel is perfectly placed as it made the decision to invest in it many years ago.” Rebel is also planning to make significant updates to its customer loyalty program, which will help to capitalise on this momentum. The program is on track to launch in the first half of FY24. “Massive transformation agenda” Despite its relatively slow start to financial year 2024 – with like for like sales down nine per cent for the first six weeks compared to the year prior – Macpac experienced over 20 per cent growth in financial year 2023. Heraghty partially attributed this to customers wanting to maximise their leisure opportunities, which they were somewhat deprived of during the Covid-19 pandemic.  BCF has also benefited from this, with its Townsville superstore expecting over $20 million in sales during its first year of operations. “While customers are cutting back on expenditure, they aren’t cutting back on this type of expenditure. That augurs well for our categories,” he said Heraghty also noted that there’s been over $300 million invested in its store network, digital and loyalty programs and workforce planning capabilities – among other areas – since 2019.  This spending is part of a “massive transformation agenda”, which will see the business target a further $150 million in capital expenditure to drive store development programs and other capabilities in FY24. “This is where it all comes together to generate incremental improvement in performance, albeit in a tough market,” he said. “The company is well placed to enter this economic environment with a full arsenal of programs that are just coming into maturity. It will be interesting to see how it all plays out.”