Retail chain Briscoe Group is remaining cautious about the full year after seeing its half-year profit decline due to unfavourable economic conditions.
The company, which owns and operates Briscoes Homeware and Rebel Sport, reported total sales revenue of $369.24 million and tax-paid profit of $42.75 million, down 6.3 per cent for the half-year to July 30.
Homewares sales increased 0.28 per cent to $229.39 million, while sporting goods sales rose 0.46 per cent to $139.85 million.
The company’s online channels accounted for 18.33 per cent of group sales. The company says a new concept of launching new products online, shipped directly by suppliers will bring in more than $10 million this fiscal year.
Gross margin slid to 43.73 per cent while inventory jumped to $120.21 million.
Briscoe Group MD, Rod Duke, said: “We remain cautious as to the retail environment with ongoing uncertainty in relation to economic conditions, customer sentiment, cost pressures, higher interest rates and political uncertainty given the upcoming election.”
He added that it would be difficult for the company to replicate in FY23 its previous year’s profit of $88.4 million.
However the company believes it has a market advantage by broadening its range of brands and services.
“Opportunities to expand product and category ranges are also emerging in the current tightening market and we are extremely pleased to have secured a number of new market-leading, quality brands for the group,” said Duke. “Varying product ranges from Dyson, Samsung and Ecoya will be available from Briscoes Homeware by the end of the year. During the first half we also successfully launched the Huffer brand into eleven Rebel Sport stores and we plan to continue the rollout during the second half.”
Briscoe Group is also looking to an expanding foray into retail media across both retail chains as a source of revenue growth.
Leveraging retail media across the in-store network and online platform is another opportunity for the group to grow revenue. During the first half we successfully deployed digital marketing screens across all Briscoes Homeware and Rebel Sport stores,” he said.
