Super Retail Group Ltd (ASX: SUL) shares are pushing higher on Thursday morning.
At the time of writing, the ASX 200 stock is up 3% to $12.62.
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Why is this ASX 200 stock charging higher?
Investors have been buying the retail conglomerate's shares after its release of a new group strategy went down well with the market/ was overshadowed by a selloff on Wall Street overnight which has spread to the local bourse.
The ASX 200 stock's new strategy outlines how it intends to capture a greater share of its $65 billion addressable market opportunity across automotive, sport, and outdoor through growth in its core categories and expansion into adjacent categories within those markets.
New strategy
There are four key drivers of brand growth within the strategy.
The first aims to expand Supercheap Auto's range to capture more of the brands that its customers want. This includes a focus on meeting future demand created through growth in electric vehicles.
Supercheap Auto plans to introduce new store formats and extend fitment capabilities to a broader range of existing products.
Another is a step change in growth for rebel's store network with a stronger focus on regional opportunities. It will also double down on range optimisation and a relentless focus on owning sport.
Another initiative will see the ASX 200 stock extend BCF's roll out of superstores, as well as new large-format stores, and unlocking access to the 4WD market through fitment.
The final initiative will be the ongoing growth of Macpac's store network, increasing its brand awareness in Australia, and a continued focus on technical product innovation.
The company notes that this means the store portfolio is planned to increase from 790 stores to over 900 stores by 2031, focusing on opportunities in underrepresented regional areas, new formats and fitment alongside increased online penetration.
This will be supported by a disciplined store renewal program, optimising store space, expanding the offer in key locations and online. It also expects the increased store footprint to enable the accelerated growth of the brands omni-channel offers, expanding the customer reach for click and collect.
'Significant transformation'
Super Retail Group's managing director and CEO, Paul Bradshaw, appears very positive on the new strategy. He said:
Our new Group Strategy puts the customer at the centre of everything we do as we build our business for its next phase of growth. We are determined to be closer to our customers than ever before – understanding and meeting their needs as they continue to evolve. Together, our four brands capture $4 billion of a $65 billion market opportunity in Australia and New Zealand. We have an incredible opportunity to pursue growth across our core auto, sport and outdoor markets, both in traditional and adjacent categories.
Our 13 million active club members account for 85% of our sales and these deep customer relationships are a clear competitive advantage. Our strategy focuses on building businesses that best serve our customers and their communities through range, store format, brand networks and fitment, and importantly meeting them where and how they shop. We have launched a significant transformation program to help power this growth. This will require deliberate short-term investments in our systems and unlock a sustainable cost advantage over time.
