Super Retail thinks the threat from Amazon has been overstated

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The arrival of Amazon in Australia won’t be as bad for Super Retail — the operator of Rebel, Supercheap Auto and BCF stores — as some think.

Peter Birtles, the CEO, today presented the Morgan Stanley 2017 Australian Emerging Companies Conference with an analysis of international peers.

“The performance of our international peers in maintaining and growing operating margins despite competitive challenges provides confidence that Super Retail Group’s margin targets are achievable,” he says.


“Our analysis concludes that market disruption will not be as detrimental to Super Retail Group as implied by some market commentary and the recent share price fall.”

A short time ago, its shares were up 3% to $7.71. The shares have been falling since April, about the same time Amazon made it clear about its entry to Australia.

Birtles says the company’s businesses are strong and well-positioned to respond to disruption.

Here’s the company’s strategy:

Source: Super Retail

“Super Retail Group has been anticipating market disruption for a number of years,” he says.