SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND
Written on the 25 July 2017 by David Simmons
A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017.
Super Retail Group (ASX: SUL) today announced the company's Amart Sports stores will be converted into Rebel stores by 31 October 2017.
The parent company says the transformation will allow the company to focus on a single brand.
"Following a strategic review, the company has concluded that the long-term interests of shareholders, customers and team members would be best served by the group focusing on one single core brand within its sports division," says Super Retail Group CEO and Group Managing Director, Peter Birtles (pictured).
The change will see 160 Amart Sports stores across the country converted into Rebel stores.
Super Retail Group which also owns BCF, Rays, and Supercheap Auto, says the change will bring the best of both brands into one "strong, national omni Sports retailer".
The change should not affect current employees of Amart who will be transferred directly into the newly converted Rebel stores.
Birtles says the change reflects the group's long-term strategy.
"The Amart Sports brand has been, and continues to be, a strong performer for Super Retail Group, however, as a business it is important we are realising a strategy that places the group in the optimal position for strong and sustained growth, and that we anticipate and respond to the changing and market dynamics that continuously evolve," says Birtles.
The group anticipates the conversion will boost the value of Rebel by $15 million after two years.
Converting Amart Sports stores into Rebel stores will not be cheap, however, with Super Retail Group anticipating $34 million of one-off after tax non-cash costs associated with the conversion.
Shares in Super Retail Group are currently up 3.68 per cent to $8.73 following this morning's announcement.
Author: David Simmons