News

25 Mar, 2019
How a crafty potter's petition got a promise from Australia Post CEO
The Sydney Morning Herald

Designer Sally Flannery is one of countless Australian business owners worried about packaging ending up in landfill: and she isn't afraid to ask executives to change things.

"My business is a sustainable business, aiming not to use plastic and all that kind of thing. But about six months ago I was saying, 'Why is shipping so expensive?' " she says.

Flannery had been committed to using her own packaging materials when sending her ceramics orders out to her customers. She soon discovered she was paying "at least $300 a month" more to do this because bringing 'bring your own' packaging incurs different fees to Australia Post flat-rate pricing for larger parcels.

A 5 kilogram parcel can cost at least $2 more to send if bringing your own packaging, according to the online postage estimator.

Lobbying Australia Post

The entrepreneur took to Change.org to ask the postal service to review this. One week later after receiving 6000 signatures in support, an email from Australia Post chief executive Christine Holgate landed in her inbox, asking to learn more about the issue.

Flannery requested a phone call with management and was told last week that Holgate and her team had committed to changing pricing structures by October 2019 so all parcels under 5kg will have flat rate pricing, no matter what packaging is used to ship the item.

The Change.org petition received more than 6000 signatures and caught the attention of senior Australia Post management. 

 

"I actually almost didn't write [the] petition, because I was thinking 'it won't make a difference', but I'm so glad I did," Flannery said. "An amazing win for the environment. Power to the people."

Australia Post has confirmed this to the Sydney Morning Herald and The Age, but cannot comment further on future on this changes at this stage.

Compostable bags

The win comes as Australian startups turn their minds to addressing the environmental impacts of the global e-commerce boom.

Better Packaging Co founders Kate Bezar and Rebecca Percasky have spent the past two years building parcel bags that consumers can compost at home.

"It was just so compelling, the proposition of being able to really make change," Bezar, who also founded Dumbo Feather magazine, says.

Better Packaging Co has been working with brands like Ripcurl, L'Oreal Paris, Garnier and Maybelline on projects to start using its products, which include parcel packs made of biodegradable materials derived from corn.

The founders have invested $200,000 of personal savings in the company so far, but after their first run of 50,000 bags sold out in two weeks, Bezar says the pair knew they were on to a winner.

The bags start at 18c and go up to just over $1 per unit, making them on par with plastic packaging bought from big stationery retailers, the founders say. After less than one year selling the bags, the business is tracking to achieve $1 million turnover.

It's an idea retailers have been surprisingly hungry for, Percasky says.

"We’ve always been surprised by how fast some of the bigger brands have gotten on board."

The startup, which has been a champion of Flannery's petition, has also been in touch with Australia Post to pitch itself as a potential partner.

While the appetite to ditch plastic packaging is strong, Bezar says the process of building the startup has revealed the shortcomings of Australia's recycling sector.

"It was pretty disheartening realising how fundamentally flawed some of those processes are. Some of those sorting facilities have not been updated in decades," she says.

The company is now getting to work developing parcel packs that can go in consumer's recycling bins instead of composting.

With warehouses in Australia, New Zealand, the USA and China, global goals are on the table.

"The next plan is the UK or Germany, based on the interest we’re seeing. We can’t say no to anyone," Percasky says.

25 Mar, 2019
Officeworks' latest Amazon defence
Australian Financial Review

Officeworks has unveiled its latest defence against Amazon, opening the world's largest office supplies store where customers can test pens, paint and office chairs while experimenting with voice technology and home automation.

The new store in Mentone in Melbourne's south east is almost 6500 square metres,  four times the size of the average Officeworks store, and carries about 35,000 products,  more than double the number in a typical store.

It boasts the largest Apple range in Officeworks' network, the largest print and copy centre, with massive printers for architects and designers,  and more than 1000 square metres dedicated to office furniture.

Mentone customers will be able to book a home visit from Geeks2U, the tech services business Officeworks acquired earlier this month, and order customised sports and corporate gear from the ONTHEGO kiosks. Officeworks has also taken a leaf out of Bunnings' playbook, opening its first in-store cafe and playground.

Officeworks' new managing director, Sarah Hunter, said the store was aimed at helping customers understand the breadth of Officeworks' range of products and services, which has grown almost 30 per cent over the last five years to include new categories such as art supplies, educational materials, and internet connected devices.

If customers did not know Officeworks sold paint and easels, for example, they would not search for them online, which accounts for about 20 per cent of Officeworks' sales.

"Its primary intent is to reimagine  Officeworks' product offer and  ... allow [customers]  to visualise that and see us in a different light," said Ms Hunter, who took the helm in January from long-serving managing  director Mark Ward.

"The secondary benefit is distribution and the every channel benefits it brings."

Same-day delivery

Because of the wider and deeper range, Officeworks plans to pick online orders for customers in Melbourne's south-east from the Mentone store rather than from its distribution centre on the other side of town.

"That was not the primary reason we developed this concept but it's certainly a very strong benefit for us ...  we can offer same-day delivery to the Mornington Peninsula area," she said.

The new store, which takes the Officeworks network to 167, highlights the importance of bricks and mortar retailing amid increasing competition from pure-play online retailers such as Amazon.

"We haven't seen a material shift in the competitive landscape from Amazon in the last 12 months," Ms Hunter said, "but we recognise they're a strong player and we are in a highly competitive environment, not just Amazon.

"So creating experiences and connections with our customers and helping them learn and understand what will work for them is absolutely critical."

However, the shift to bigger boxes comes at a time when big box or category killer retailing is starting to come under pressure.

In a recent report, Online is Eating Big Box Retailing, investment bank  Morgan Stanley said big-box retailers are underperforming as consumers shift online and to specialty stores, pointing to weak sales at Woolworths' liquor category killer Dan Murphy's.

Prefer convenience

Morgan Stanley analyst  Tom Kierath said sales per square metre grew faster at small box retailers than big box retailers  in the December-half.

"We think that consumers are shifting away from big-box retail formats as they increasingly prefer convenience and experiences that are better cultivated in a small-box environment," Mr Kierath said.

Officeworks, however, was an exception, with sales per square metre growing 7.6 per cent in the half-year and total sales by 8.2 per cent to $1.1 billion, lifting earnings 11.8 per cent to $76 million.

Ms Hunter said Officeworks had been operating for almost 25 years in an increasingly competitive landscape and had evolved to meet customers' needs.

"If we stick to our knitting we'll continue to be a successful business and grow," she said.

Ms Hunter, who oversaw the implementation of Coles' demerger from Wesfarmers,  declined to comment on renewed speculation Wesfarmers might be considering selling Officeworks or attempting another float after  pulling the plug on a $1.5 billion initial public offering in 2017.

Wesfarmers chief executive Rob Scott said last month he was happy with the current portfolio of assets, which is heavily weighted to retail, "but every business is for sale all the time, subject to someone coming along and offering the right price."

25 Mar, 2019
Myer to stop selling Apple products
The Sydney Morning Herald

Australia's largest department store operator Myer will stop selling "unprofitable" Apple products as part of its drive to focus on higher-margin items, Myer said on Friday.

Apple is facing weak demand for its iPhone, which has come under fire for being too expensive. Demand has notably fallen in the world's biggest smartphone market China, partly as a result of the trade dispute with the United States.

The decision, which will apply to the 16 department stores that stocked Apple products as well as online sales, comes as the department store operator restructures to better compete with online retailers.

Myer, which was founded on the back of the country's gold rush more than a century ago, is cutting costs and boosting its online presence which allowed it to swing into a modest first half profit in January.

"Myer has made it clear that it will not chase unprofitable sales and has made this decision as we could not reach acceptable commercial terms that were in the best interests of the company and shareholders," a spokesman said.

"This decision is also about ensuring space in our stores is utilised in the most productive and effective way for the company. We thank Apple for the positive partnership we have had over many years."

Myer's net profit came in at $38.4 million for the six months to January 26, compared to a loss of $476.2 million for the same period a year earlier.

On Thursday it announced it  had cut 50 more head office and back-of-house jobs, as new boss John King continues to reshape the struggling department store.

The company, which has about 11,500 employees, said cutting the 50 roles, mostly in marketing and merchandising, would help create "streamlined roles, clearer accountabilities and improved efficiency".

21 Mar, 2019
Mastermind of Harvey Norman's Irish revival to rejoin Australian HQ
 Scott Barbour - Financial Review

London | The architect of Harvey Norman's turnaround in Ireland, Blaine Callard, is set to end his decade in Dublin and return to the retailer's head office in Australia, where he may be put to work on the more lacklustre domestic operation as it grapples with the Amazon threat.

Mr Callard, who has been an outspoken advocate for traditional bricks-and-mortar retail during a period of major online disruption – Ireland is a mature Amazon market – will reportedly take on "a strategic role" in Gerry Harvey's empire.

He has worked for Harvey Norman for more than 23 years, starting as a franchisee before running projects for Mr Harvey's executive team and then putting in shifts as managing director of both the Noble House Design and Artemis Imports subsidiaries. He was dispatched to the Slovenian operations in 2006 and shifted to Ireland in 2010.

During his time as Harvey Norman's main man in Europe, he also founded and ran a furniture import business in Slovenia, set up a music production company in Ireland, and completed an MBA at Trinity College Dublin.

The Ireland business was loss-making when Mr Callard took the helm in 2010, and haemorrhaged nearly $200 million in the years that followed. It took six years to start breaking even, but the latest half-year result, released last week, suggests Mr Callard's turnaround strategy is now bearing fruit.

In the half-year to the end of 2018, pre-tax profit at the Irish and Northern Irish businesses surged by 164.4 per cent to $10.34 million, as sales revenue climbed 21.6 per cent to $208.07 million.

The business's 15 stores have gained market share, and the chain is reported to be Ireland's top-selling retailer in most of its product categories bar furniture, where Ikea's single Irish store takes the crown.

If he has any kind of magic touch, it might be needed in Australia, where headline franchisee sales revenue fell 1 per cent in the December half, and underlying profit after tax and non-controlling interests rose just 0.1 per cent. However, the company has attributed this to a more general moderation in the Australian discretionary retail market, rather than an issue particular to Harvey Norman stores.

The company's half-year profit report said the Irish turnaround has hinged on the flagship Tallaght store, on the outskirts of Dublin, which opened about 18 months ago.

21 Mar, 2019
Macquarie report says up to 60 Big W stores may need to close
Inside Retail Australia

Woolworths Group may need to consider closing up to a third of its Big W locations if the discount offering continues to underperform, a Macquarie Wealth Management report said.

According to the report, as first reported last week by The Australian, Woolworths Group’s review into the Big W store and distribution centre network is likely to end with up to 60 store closures, given the challenging retail environment.

A Woolworths spokesperson told IR that the review is still ongoing and that no decisions about the network have been made.

“We will update our team members and the market once the review has been completed,” the spokesperson said.

But Macquarie noted that half of Big W’s stores are in challenging centres, many of which are regional centres, and that these locations are unlikely to give the brand the sales it needs to return to profitability.

Woolworths Group announced the national review into its Big W store and distribution centre network in February, when the discount department store chain reported a loss before interest and tax of $8 million over the first half of the year, despite comparable sales growth of 5 per cent.

Woolworths said it is expecting further losses from the brand over the remainder of the year, but that it was not expected to be as severe as the FY18’s $110 million loss.

21 Mar, 2019
The Buzz: VAMFF champions the New Normal, and Calvin Klein ends catwalk line
The Australian Business Review

Well, that’s another Virgin Australia Melbourne Fashion Festival over. And what a week it was for this country’s biggest fashion event. The many highlights included Carla Zampatti’s spectacular Grand Showcase, featuring a performance by the incredible Dami Im; the National Graduate Showcase of last year’s top fashion design students; body activist and curvy superstar Ashley Graham hitting the catwalk to whoops of delight; and the International Women’s Day Breakfast featuring incredible women such as Camilla Franks, federal MP Julia Banks and host Nicky Briger, editor of Marie Claire

While it’s too early to call final numbers and ticket sales, chief executive Graeme Lewsey says the numbers are definitely up on last year, but he has more important results in mind. “We set out to enhance the consumer and stakeholder experience and provide better connectivity and value through the experience, and I know that we did that because the feedback has told us so,” Lewsey tells Buzz, citing enhanced production values, more musicians participating and the increase in food and beverage options.

 

Also notable was the level of diversity on the catwalk. “We have changed runways forever,” Lewsey boldly declares. VAMFF has long been a champion of inclusion, but this year its rollcall covered an even greater variety of ages, sizes and ethnicities. “We made a phenomenal effort to not just make the change but also in a non-tokenistic way. We didn’t preach about it. We left that to other people like Ashley Grahamor Hanan (Ibrahim), our Muslim model.

“We had transgender models, multiple nationalities, all done to inspire and represent our community better. While there is still a long way to go … it was a significant step up. And we have been supported by the industry at large, from model agents to designers. It was not just the festival, but the festival had a moment in time and we can never go back from it.”

Buzz was most involved as host of the Australian Fashion Summit, a day-long business seminar that brought together industry leaders from around the country and the world. There were fantastic takeaways from all of the speakers, and Graham brought another rock star moment to the event with her inspiring body positivity affirmations for women and men. Spell and the Gypsy Collective co-founder Elizabeth Abegg explained how they avoided the usual frenzied warehouse sale situation by making it a ticketed and timed event. No more elbows and catfights, rather a relaxed and enjoyable retail experience; there was not a brand present that wasn’t making a note about doing that in the future. And, given it was IWD the same day, Heidi Middleton (ex-Sass & Bide, now Artclub) and Pip Edwards (ex-Tsubi, now PE Nation) inspired a horde of women, working mothers and business owners with their no-brainer approach to flexible working hours, to “remove guilt” from the workplace and boost productivity and satisfaction.

In international news, Calvin Klein last week announced a halt to its runway collections. Buzz readers will hardly be surprised at the news; the company axed Belgian designer Raf Simons in December, just over two years into his three-year contract. As chief creative officer, Simons had full creative control of all aspects of the brand, from fashion to underwear and marketing. He renamed the collection line Calvin Klein 205W39NYC, for its headquarters in New York, and produced just four cutting-edge and conceptual runway collections. When the numbers didn’t add up for shareholders, executives started rethinking the company’s strategy and suggested the focus would move to its cash cow lines of underwear, denim and perfume. The question now is, how will the removal of the “halo” collection, which provides a trickle-down effect from the aspirational to the everyday, affect the company’s future?

20 Mar, 2019
'Manifestly failed': Damning report calls for franchise sector overhaul
The Sydney Morning Herald

The parliamentary inquiry into the $170 billion franchising sector has called for a total overhaul of Australia’s franchising system in a damning report released on Thursday.

The bipartisan report calls for new laws, greater enforcement powers and penalties for the regulator and a suite of changes to the franchising code.

It says the current regulatory environment has "manifestly failed to deter systemic poor conduct and exploitative behaviour and has entrenched the power imbalance".

The report draws parallels between the franchising sector and the behaviour uncovered in the banking royal commission.

"The extent of poor corporate governance in some areas of franchising is comparable to that in the financial services sector," it said. "There are deeply rooted cultural problems that will not be resolved by a franchisor replacing a few senior executives."

Taskforce

The report calls on the government to establish a franchising taskforce to examine and implement its recommendations, made up of representatives from Treasury and the Department of Jobs and Small Business.

Labor is backing the establishment of the taskforce and will act on its recommendations.

Shadow small business minister assisting, Madeline King, said workers were being mistreated and franchisors were not being upfront.

"This taskforce will be integral to ensuring that workers in franchises will not be ripped off in the future," she said.

Small Business Minister Michaelia Cash said the government would carefully analyse the report and consider what improvements needed to be made before proceeding.

"The government is committed to supporting effective and fair reforms to the franchising sector without imposing unnecessary regulation on the sector," she said.

Suite of changes

The report recommends a suite of changes to the franchising code, including the inclusion of civil pecuniary penalties and giving the Australian Competition and Consumer Commission (ACCC) more responsibilities and greater enforcement powers to "root out misconduct and exploitative behaviour" in the franchise sector.

The report wants improvements to disclosure and transparency, including the provision of all financial information when franchises are sold or transferred including Business Activity Statements and greater clarity and accountability around marketing funds.

The report recommends the taskforce examine making unfair contract terms in franchise agreements illegal, investigate options for a public franchise register with franchisors providing updated disclosure documents, and template franchise agreements annually.

It recommends civil penalties if franchisors fail to comply.

The report calls for the ACCC, the Australian Taxation Office and the corporate watchdog, the Australian Securities and Investments Commission, to launch investigations into embattled Retail Food Group, its current and former directors and officers for potential insider trading, tax evasion, quality of audit, directors' duties and continuous disclosure.

A spokesperson for Retail Food Group said the franchisor "supports any changes which will be of benefit to the franchising industry".

Workers reveal the systemic wage abuse they suffered at 7-Eleven stores around the country.

Evidence to the inquiry revealed “a substantial amount” of intimidatory behaviour and misconduct by franchisors, leading the inquiry to call for whistleblower protections.

The report said the inquiry took a "holistic approach" to address the systemic problems in the sector and recommended the government "avoid cherry picking, and instead implement all the recommendations in [the] report as soon as possible".

Time to act

Senator John Williams, who was crucial in calling for the inquiry into franchising, said none of the 17 inquiries into the sector over the past 30 years had worked.

"The work has now been done. It is time for the government to act," he said.

Senator Williams said he was aware the industry had serious problems but was shocked at what the inquiry uncovered.

"It was worse than expected. It was like the royal commission into banking," he said.

Former ACCC head Allan Fels said the franchising code had been "somewhat disappointing" and needed strengthening to be effective.

 

"The problems with the code have been longstanding and systemic and, accordingly, strong medicine is required and this report goes a considerable distance in that direction," he said.

The efficacy of the Franchise Council of Australia was questioned in the report, which said the body "does not appear to provide a balanced representation of franchisor and franchisee views". However, FCA chief executive Mary Aldred said the industry body welcomed the inquiry's findings.

"Traditionally we could have done more to incorporate the input of the views of franchisees, I am very alive to that," she said.

The parliamentary inquiry was triggered by a series of media investigations by The Age and Sydney Morning Herald into 7-Eleven, Domino's Pizza, Pizza Hut, Caltex and Retail Food Group where franchisees described franchising as "indentured servitude" or slavery.

It was worse than expected. It was like the royal commission into banking.

Senator John Williams

The series exposed crushing business models that pushed franchisees to the wall, leading to a range of issues including financial ruin and marriage breakdowns. To make ends meet, some franchisees engaged in wage fraud.

19 Mar, 2019
Myer takes stock control high-tech
Financial Review

Myer is looking to reduce theft and supply-chain costs and boost sales by installing radio frequency identification or "smart" tags in its $500 million private-label brands.

The beleaguered department store chain is at the forefront of a major push by Australian retailers to explore the benefits of RFID — intelligent bar codes used to track products through the supply chain from factories to consumers' shopping baskets.

First used in World War II to help identify aircraft as friend or foe, RFID has been embraced by global brands such as H&M, Zara, Hanes, Decathlon, Lululemon, Puma and Nike, but the technology has been slow to take off in Australia because of the cost of tags and RFID readers and lack of computer processing capacity.

 

The cost of the technology has fallen dramatically in the past few years — tags that once cost $US3 are now less than 20¢ — prompting Australian retailers grappling with the arrival of global RFID-enabled competitors and the shift to online retailing to revisit opportunities.

Myer started testing RFID tags in September 2017, applying the thumbnail-sized tags to technology products sold in its flagship Bourke Street store in Melbourne.

It now has six stores in Victoria and one in Sydney using RFID to locate and identify technology, bed linen and clothing and is in talks with bed-linen company Sheridan and a major apparel label about installing RFID tags in merchandise in factories and selling the products in all 61 Myer stores.

"We're also exploring opportunities to put RFID technology into Only at Myer and Myer exclusive brands (private label brands such as Basque and Blaq) where we control the whole supply chain," said Myer's head of retail operations, Gary Stones.

"They'd be installed at source in the factory — that way you can track that inventory through the entire supply chain to when it arrives in the customers' hands," Mr Stones told The Australian Financial Review.

"We have to do proof of concept (but) as we control the supply chain, that would be a quick win for Myer to target private label while we work with national brand suppliers," he said.

The main benefits are in tracking inventory — ensuring the right amount of stock is in the right place at the right time to avoid missing out on sales in store and online — and reducing "shrinkage", including theft, in distribution centres and stores.

Myer estimates about 85 per cent of shrinkage is due to staff or customer theft and 15 per cent is due to administrative and supply-chain errors.

"You can perform stocktakes multiple times on any given day and update inventory instantly in real time," he said, "so the inventory (in stores or) on your website is 100 per cent accurate," Mr Stones said.

Sales had risen in categories where RFID was in use, because of better on-shelf availability, and stocktakes that once took 30 hours had been cut to eight minutes, freeing staff to serve customers.

Myer also had reduced its shrink rate 80 per cent in some categories by conducting daily stocktakes, pinpointing where shrinkage or theft was occurring and taking measures to combat losses.

"If team members are dishonest, when they understand you can track individual items and you're going to know it's missing between morning and lunch time, that's an absolute deterrent to team member dishonesty," Mr Stones said.

Myer is one of more than 70 Australian retailers, suppliers and vendors who are members of the RFID Coalition, formed almost three years ago by GS1 Australia to accelerate the take-up of the technology. 

Other retail members testing or implementing RFID include Kmart and Target, Country Road Group, Spotlight, Cotton On Group, Kookai and Hanes, which owns Sheridan and Bonds.

"Some are still coming to grips with what's going on in RFID and the potential benefits it can bring; others are doing full-blown proof of concepts and some are in full roll-out mode," said Mr Stones.

Nick Trudgett, general manager sales and operations at Checkpoint Systems, one of three RFID vendors working with Myer, said global retailers that implemented RFID had reported 5 to 10 per cent sales increases by having the right products in the right place at the right time and had reduced shrinkage by 1 to 1.5 per cent.

"In the early 2000s, there was a great euphoria about what RFID could do in the retail space," Mr Trudgett said, "but the technology couldn't really do it and the cost was prohibitive.

"Now the cost of [tags] has dropped dramatically because billions of these ... are being produced by manufacturers ... and the utilisation of cloud-based solutions has enabled retailers to process data en masse in real time.

"It gives them visibility of knowing exactly what has left the building," he said.

19 Mar, 2019
Blackmores beefs up tech skills in boardroom
Financial Review

Vitamins group Blackmores has appointed Christine Holman to its board as an independent director, as it looks to beef up its technology expertise around the boardroom table amid an overhaul of its operations.

The group has temporarily lost its way after a poor first half profit where China profits went backwards and is on the hunt for a new chief executive to succeed Richard Henry, who departed in the fall-out. Blackmores shares plunged 25 per cent in mid-February after the disappointing result and softer outlook.

Ms Holman became a director of ASX- listed tech company WiseTechin December and is also on the board of building products group CSR, which makes Gyprock plasterboard, PGH bricks, Hebel precast concrete blocks and panels, and Bradford insulation and storage battery products.

 

Christine Holman has been appointed as an independent director; she is also a director of WiseTech and is on the board of building products group CSR. CSR

Ms Holman was a chief financial officer and commercial director at Telstra Broadcast Services earlier in her career.

Blackmores chairman Brent Wallace said on Monday that Ms Holman had two decades of experience in mergers and acquisitions, finance, technology and digital transformation.

"Blackmores is currently embarking on a significant business transformation program to seize on growth and expansion opportunities," Mr Wallace said.

Blackmores shares are hovering around the $95 mark after the mid-February drop from $124. The stock reached $220 in January 2016 in what turned out to be the peak of exceptional demand from Chinese consumers for strong Australian brands with "clean and green" credentials following contamination issues among some Chinese manufacturers of infant formula shattered confidence in the production systems of some Chinese brands.

Blackmores was hit by a shift in China trade after falls in sales through the so-called daigou channel, where Chinese entrepreneurs buy large volumes of Australian products from big retailers to sell online on e-commerce sites in China. The rise of the daigous was a driving force behind a surge in Blackmores' market value to a record $3.8 billion in 2016. But the company in the past year has been trying to claw away more of that business for itself, by shifting to a model of selling under Blackmores branded sites on the large China online channels like Alibaba and JD.com.

Mr Henfrey took the helm of Blackmores in August, 2017 from Christine Holgate, who is now running Australia Post.

19 Mar, 2019
Four trends driving experiential marketing in 2019
Econsultancy

Budgets for experiential marketing rose 19 consecutive quarters to Q2 2018, and in the Q4 2018 IPA Bellwether report, it was only events that saw any rise in investment at all. This shows that brands are realising the potential of experiential to engage audiences in more meaningful and relevant ways.

So, what are the trends set to shape experiential marketing? You can read much more on the topic in Econsultancy’s Experimental Marketing Best Practise Guide, or continue below for a summary.

Experiential marketing has become common practice for large-scale technology brands like Netflix and Google; the latter holding hundreds of events in Europe alone each year.

Without a physical presence, experiential enables these brands to create real-life connections with consumers through engaging and memorable in-person experiences. Indeed, their success appears to have inspired other (and smaller) digital brands to invest in the medium. And we are seeing a wide range of industries getting involved, from consumer brands like Sephora to B2B giants like GE.

Alongside this, we are also seeing the growing recognition of skills and expertise. There has been an emergence of a new raft of job titles that are specific to experiential, as well as an increase in companies placing greater value on them.

According to Major Players, 35% of people working in experiential received a pay rise of between 5% and 10% in 2017.

 

While many experiential events remain free for consumers, a growing number of brands are moving into paid-for ticketed events. Figures from Event Marketer’s EventTrack 2018 show that one third of consumers have paid an admission fee to attend a brand experience or event.

One of the main reasons for this is to allow brands with limited marketing budgets to carry out effective experiential experiences. It also creates more credibility for an event, as well as helps brands to plan around a definite number of attendees (and reduce drop-outs).

Spotify is a great example of a brand that has seen great success with ticketed events. It has previously created a series of live concerts based on its WhoWeBe playlist, featuring grime, rap and hip-hop stars like Giggs and Dizzee Rascal. With young fans keen to attend, the event (for 10,000 people) sold out three weeks in advance, with tickets selling at £35 each.

Another growing form of experiential marketing is ‘stayable’ experiences, whereby consumers are able to stay over in comfortable spaces like hotels and boutiques.

Stayable experiences are a natural fit for brands within the travel and hospitality industries. But unlike regular stays, these types of branded experiences are far more immersive, and in turn, more memorable. This is also in comparison to daytime experiences; the idea being that it’s far easier to forget a two-hour event than it is an entire day and night in a new or novel location.

So far, this area of experiential has been largely untapped, apart from a few high-profile examples. W Hotels is one brand that has invested in it, creating a luxury yurt experience for its loyalty programme members at Coachella festival. Each yurt was designed to resemble the brand’s properties in Barcelona, Bali and Hollywood, and offered guests luxuries such as a maid turndown service, personal concierge, and shuttle service. This gave consumers the chance to experience W Hotels’ core product offering, albeit in a heightened and unique environment.

As well as creating a memorable experience for its audience, the yurts also generated social noise for W Hotels, with consumers ready and willing to document and share their experience on Instagram and other social channels.

From Coca-Cola to Topshop, we’ve already seen VR and AR being deployed by brands within experiential. Other forms of technology are also coming to the forefront, too, and in various stages of the planning and execution of campaigns.

One example of this is the use of technology to create multi-sensory environments, whereby brands can capitalise on smell, sound, and touch to heighten experiences. Whiskey brand Diageo has experimented with playing the crackling sound of an open fire at the bar, for instance. Similarly, a pop-up for home fragrance brand Glade involved different rooms inspired by a particular Glade candle scent – each one designed to evoke an emotional response.

Elsewhere, it’s been suggested that 2019 could be the year that we see robotics incorporated into experiential, offering companies an innovative way of engaging with consumers (such as robots serving food and drink). Similarly, experiential agencies are at the early stages of experimenting with finger vein recognition – a biometric technique that can analyse people’s finger vein patterns in order to identify them.

Finally, mixed reality has been named as a technology to watch. This is essentially a hybrid of AR and VR, which anchors virtual objects to the real world, and maps them to the physical environment to allow users to then interact with the virtual objects.

As we make headway into 2019, and the the experiential marketing sector continues to grow, brands and agencies will need to continue to innovate in order to stand out in this increasingly crowded space.

15 Mar, 2019
Guy Russo named chairman of Guzman y Gomez
Inside Retail

Guy Russo, the former head of Wesfarmers’ department store division and long-standing board member of Guzman y Gomez (GYG), was appointed chairman of the board, the Mexican food retailer said on Wednesday.

Steven Marks, the founder and global CEO of GYG called Russo one of the most “dynamic and successful retail executives in Australia, if not the world” and said he is “one of the most astute board members I’ve seen”.

“As chairman, he will have high expectations of both board and management to deliver across all aspects of governance and the business,” Marks said.

In addition to his retail experience at Wesfarmers, Russo was previously president at McDonald’s Greater China and managing director and CEO at McDonald’s Australia.

He joined the GYG board in 2014 and has been part of the rapid expansion of the business over the last four years. He played a role in the launch of a breakfast menu and healthy meal options for kids and in securing a $44 million investment from TDM Growth Partners to accelerate domestic and international growth.

“Under the leadership of Steven and Robert, GYG has been on a remarkable journey since its first restaurant opened in Newtown in 2006. I’ve been fortunate to have been involved for much of this time and anticipate an exciting future as we pursue a mission to reinvent fast food,” Russo said.

“We’ll be seeing more of the exciting food and culture that GYG has become renowned for along with some category-defining work in menu and restaurant innovations over the next 12 months. I can’t wait to be involved with the whole team, from robust leadership to our energetic crew in store, as we can take GYG to the next level.”

GYG has already opened two restaurants in 2019 and has a further 15 new restaurants planned for 2019 across Australia.

15 Mar, 2019
Spell & The Gypsy Collective: 80% of revenue is from direct sales
SOURCE:
Ragtrader
Ragtrader

Spell & The Gypsy Collective has allocated its first ever sustainability budget this year.

Speaking at the Legacy Summit in Sydney this morning, co-founder Elizabeth Abegg discussed the brand's growing investment in greener practices.

The brand, which has a range of ethical and environmental targets leading up to 2025, commenced its journey in April 2016.

"From our factories to our manufacturing methods to our everyday footprint here in Byron Bay, our vision is to continue to create beautiful garments that also inspire change towards truly sustainable fashion."

Abegg said a direct-to-consumer model allows the brand to draw 80% of sales from its own website and channels, allowing "wiggle room" in financing sustainability.

"We don't have shareholders or investors and it allows us to be accountable to ourselves."

She said investment in consultants, fabrics and certified suppliers were the biggest costs to greener initiatives. A shortage in some ecologically friendly fabrications is also a challenge.

"Only 2% of the world's factories are accredited so things don't always happen as fast with new suppliers," she added. "We're lucky in that we design a year out, so we design in June and it goes out the following June, so we can absorb the pace."

The brand has already made in-roads to achieving its targets. Its latest impact report revealed 86% of Tier One factories have been ethically accredited, with 36% achieving environmental certification.

Spell & The Gypsy Collective has seven pillars in its 2025 sustainability strategy, ranging from sourcing to production to community values.


 

15 Mar, 2019
It’s official: Australian Government passes bill to end animal testing for cosmetics
Cosmetic Design

The Australian senate just passed a bill to effectively ban cosmetic testing on animals in Australia in a move that has been described as a ‘huge win’ for animals, consumers and science.

 

 

15 Mar, 2019
Parking tops shoppers’ mall wishlist
The Australian

Forget about dining and entertainment precincts at shopping centres — Australian consumers really want more carparking, and cheaper parking to boot.

A survey of shoppers in the Asia Pacific by investment bank UBS found that while customers in Hong Kong, Singapore, Japan and China want a greater choice of retailers and more services, Australian shoppers’ first priority is parking.

“Every Australian landlord is investing in entertainment and dining precincts, this data is saying there is less of a focus on this than landlords think,” said UBS analyst James Druce.

The survey of more than 14,000 shoppers is sobering reading for Australia’s mall owners, many of which are major listed companies like Westfield owner Scentre Group or Vicinity Centres, part owner of Melbourne’s mega Chadstone mall.

The downside for landlords is that parking which doesn’t generate much in the way of returns.

Visits to Australian malls dropped 15 per cent for the shoppers surveyed late last year compared with 2017, the biggest fall for countries in the survey.

This contrasts with trends in much of Asia where visits to shopping centres rose. Taiwan saw the most growth with a 22 per cent increase in a year followed by Vietnam with a 20 per cent rise. In the middle of the field was Japan, with a 2 per cent rise, while New Zealand also suffered with an 11 per cent fall in shopper visits.

UBS also pointed to the “plethora of retail assets on the market” in Australia weighing on values and the threat of online shopping including Amazon. Analyst Grant McCasker said “the listed market is pricing some pretty big asset price declines” given some of the discounts to net asset values that mall owners’ shares were trading at.

Nor would the rash of shopping centres on the market be cleared this year, he said.

UBS rated some of Australia’s listed shopping centre groups as the “least preferred” mall stocks in the region, particularly Vicinity and Stockland, despite the discounted share price.

The most preferred shopping centre stocks were listed in Singapore, Vietnam and Japan.

The analysts also looked at the effect of online shopping finding that while awareness was high in Australia at 93 per cent, only 22 per cent of those surveyed had bought and 40 per cent planned to buy from the online giant.

“Amazon’s entry into a market generally drives an acceleration in the rate of online penetration,” the research note said.

Amazon’s online penetration more than doubled in the 11 markets operates in over five years, UBS noted.

Meanwhile in Australia, the popularity of Uber Eats and other food delivery service were limiting the demand for dining options in shopping centres.

The survey found that more 40 per cent of shoppers in Hong Kong, Singapore and China would like to see more food and restaurants in malls, but in Australia, that figure fell to 24 per cent.

15 Mar, 2019
IKEA says electrical vehicles 'inevitable' as it switches to electric trucks
The Australian Financial Review

IKEA's Australia country manager, Jan Gardberg, has called on the government to be "much more active" in supporting electric vehicles so it can deliver all of its home furnishings, which will soon include solar panels, in electric trucks by 2025.

"There are no incentives for anyone switching over to electric vehicles," Mr Gardberg, who is Finnish, told The Australian Financial Review. "Look at countries like Norway and Sweden and Germany where it has been a collaboration very much with government and industry and the communities to paint out the direction."

It was not "super impressive" that Australia had less than 5000 private electric cars on its roads for a population of 25 million, Mr Gardberg said. "It's inevitable that, in the end, it's going to go electrical and it's just a question about who would like to be there in the beginning and help that process."

IKEA will only sign new delivery contracts with transport companies that are introducing electric vehicles so it can meet its goal of having Billy bookcases, Ektorp sofas and other home furnishings globally delivered in electric trucks by 2025.

It also wants to start selling solar panels for homes in its local stores by the end of the year, and will also offer financing and services to install them, Mr Gardberg said. "You don't need to take an Allen key and put everything together yourself."

IKEA would ideally like all goods in Australia to be delivered on electric trucks today but there are not enough electric vehicles available, Mr Gardberg said.

IKEA does not own delivery trucks and hires transport groups, like ANC and Kings, to deliver its goods.

Reducing carbon emissions

About 100 vehicles deliver large IKEA furniture to homes around Australia every day while smaller home furnishings are delivered by another 250 vehicles every day. There are already seven electric vehicles delivering IKEA goods in Sydney, Perth and Melbourne and it hopes the numbers will gradually increase.

Mr Gardberg said shifting to electric vehicles made good business sense because it would lower IKEA's transport costs as well as its carbon emissions as the world became more urbanised.

"We like to work with a five to 10 year business horizon ... we can see the return on the investment," he said.

Switching to just one electric truck is estimated to save 36.3 metric tonnes of carbon dioxide each year. All IKEA goods in Shanghai are delivered in electric vehicles.

The Australian Logistics Council has criticised the final report from the Senate select committee on electric vehicles, which was released in late January, for not setting national targets for electric freight vehicles.

"There is clearly a willingness within this industry to move towards greater use of EV in freight delivery," ALC chief executive Kirk Coningham said in January. "It is disappointing that the committee has not supported that positive attitude by explicitly addressing freight vehicles in its recommendations to the government."

The council has suggested state and territory governments can reduce registration fees for new electric vehicles to encourage their adoption, as well as providing low-interest loans to pay for charging stations among other incentives.

Electric vehicle maker SEA Electric is building a plant in Victoria's Latrobe Valley capable of producing vans.

15 Mar, 2019
Wesfarmers, Woolworths lead list of top 1000 Australian companies
Inside Retail

Research firm IBISWorld on Tuesday revealed Australia’s top 1000 companies in 2018, with Wesfarmers and Woolworths placing within the top five.

The list provides an overview of Australia’s corporate landscape, and highlights the largest firms, growing and declining sectors and new businesses to watch in the coming years.

According to the report, over 75 per cent of the companies on the list lifted their revenue over the course of the year, with total revenue across the list having increased 1.5 per cent year on year, while over 70 per cent of businesses remained profitable.

However, after enjoying the top position in 2017, IBISWorld senior industry analyst James Thompson expects Wesfarmers to drop from second position in the list next year due to its demerger from supermarket Coles.

There were a number of new entrants, including online retailer Kogan, which joined the list at number 910 after generating significant revenue due to its expanded service offering and the growth of Kogan Mobile. The online retailer enjoyed annual revenue growth of 10.6 per cent, totalling $231.8 million, over the 2018-19 financial year.

Noni B, which entered the list at number 997, did so off the back of the successful integration of the brands it acquired from Specialty Fashion Group, which delivered revenue growth of 17.8 per cent for the year.

Other notable retailers on the list include:

  • Metcash: 26
  • Aldi: 49
  • JB Hi-Fi: 56
  • 7-Eleven: 84
  • Harvey Norman: 123
  • Cotton On: 157
  • Myer: 158
  • Super Retail Group: 160
  • David Jones: 175
  • Costco: 244
  • Ikea Australia: 323
  • Luxottica: 480
  • The Reject Shop: 527
  • Accent Group: 612
  • Michael Hill: 710
  • Nike: 772
  • Amazon: 968
  • Retail Food Group: 995
12 Mar, 2019
'This is pretty big': Qantas, AusPost seal $1.4bn deal to tackle online shopping
https://australianaviation.com.au/wp-content/uploads/2016/05/QANTAS-FREIGHT-AND-AUSTRALIA-POST-ANNOUNCE-DEDICATED-FREIGHTER-FLEET-image-3-crop.jpg

Australia Post and Qantas have struck a $1.4 billion deal that will see the airline introduce three new Airbus freighters to its network to help meet Australia's surging demand for online shopping.

The new seven-year agreement continues the two companies' former $500 million freighting deal, which was first signed in 2010 and renewed in 2015.

Under the agreement, Australia Post will continue to have access to Qantas' dedicated freighter airline network, along with priority access to belly space on 1500 passenger flights.

Qantas will also invest in three new Airbus A321P2F aircraft, former passenger jets which have been converted into cargo jets, which boast a holding capacity of 208 cubic metres and can ship nearly 28 tonnes.

Compared to the airlines' existing Boeing 737 cargo planes, each of these new aircraft will have an increased capacity of nine tonnes and are due to enter the fleet in October next year.

Qantas will be the first in the world to operate the popular A321 as a cargo plane, with chief executive Alan Joyce saying the expansion was essential to keep up with Australia's love for online shopping.

"Consumer preferences and expectations are rapidly changing and together with Australia Post we’re responding by growing our dedicated freighter fleet to provide a better experience for consumers and businesses," Mr Joyce said in a statement.

Figures from NAB show online shopping is continuing to grow locally, making up over nine per cent of total retail spend in the 2019 financial year, or about $29.3 billion.

Australia Post's own figures echo this growth, with chief executive Christine Holgate telling The Age and The Sydney Morning Herald ecommerce was "booming" locally.

"[Ecommerce] grew by 24 per cent in Australia last year and we see if growing faster and stronger this year," she said.

"For Australia Post, this is really really important."

Ms Holgate said the boost in network capacity would help the service keep on top of demand during busy periods, with the government-owned company flying more than 400 tonnes of mail on its busiest night in 2018 and shipping more than 40 million parcels around Christmas.

Domestic cargo traffic has increased significantly over the past three years, growing 31 per cent since the end of 2015 with 474,000 tonnes shipped in the 2018 calendar year.

In expanding its deal with Australia Post, Qantas has continued its fight with competing airline Virgin for a hold on the Australian freighting market.

After the company snatched Virgin's contract with shipping business Toll in 2015, Virgin hit back a year later, winning a $US575 million contract from global freight company TNT which Qantas previously held.

Australia Post's contract remains by far the most lucrative, however, with the national postal service facilitating 82 per cent of the country's e-commerce and delivering some three billion items a year.

Mr Joyce told The Age and The Sydney Morning Herald the reforging of a partnership between the two logistics powerhouses was "pretty big".

"It’s not every day that you sign a $1 billion-plus contract, with the ability for [it] to be a lot bigger," he said.

"It’s not every day you sign up your largest freight customer by miles."

Qantas booked revenue of $17 billion for the 2018 financial year, $862 million of which was freight revenue, up seven per cent on the year prior.

The company is set to report its full-year results on August 22, with analysts predicting a near $1 billion increase in revenue but a slide in earnings after taking a profit hit thanks to an increase in fuel prices. Australia Post and Qantas have had a longstanding partnership, dating back almost 100 years, which included joint ventures in ground and air logistics businesses StarTrack and Australian airExpress.

In 2012, the companies performed a swap of sorts, with Qantas acquiring full ownership of airExpress in exchange for Australia Post taking ownership of StarTrack.

8 Mar, 2019
Colleen Callander: “Retail has embraced women in leadership”
Inside Retail

Ahead of International Women’s Day (IWD) on Friday, we spoke to Sportsgirl CEO Colleen Callander about being a woman leader in retail, including the increasing representation of women in the C-suite, as well as the barriers that many continue to face to achieving senior leadership positions.

One of the key aims of IWD is to accelerate gender parity in politics, society and the economy. According to the latest figures from the Workplace Gender Equality Agency, women made up 57.7 per cent of the total workforce in retail in 2018, but only 10.8 per cent of retail CEOs or heads of business were women. In comparison, women made up 50.1 per cent of the total workforce across all industries in 2018, and 17.1 per cent of CEOs and heads of business.

While Callander believes retail has embraced women leaders more than other industries over the past decade, there is still room for improvement. Here, she shares how Sportsgirl supports the career ambitions of its almost 100 per cent female staff, and what she hopes her legacy as a leader will be.

Heather McIlvaine: What do you think about the opportunities for women to achieve leadership positions in retail? Are they greater today than when you started your career?

Colleen Callander: While the world is evolving, women are still lagging behind when it comes to leadership roles in general; however, the retail industry I feel has embraced women in leadership roles particularly over the past decade faster than other sectors.

Education has helped enormously in this regard, as well as shifting societal attitudes as a whole – I do feel we are now living in a world where women are encouraged and empowered to pursue positions of leadership.

HM: What are some of the barriers women face to achieving leadership positions? 

CC: Some of the barriers women face to achieving leadership roles is the stigma that women are not tough enough and can’t make the tough decisions. I would completely disagree with this, as I have had to make some pretty tough decisions throughout my career. However when tough decisions need to be made, I make sure they are made with strong consideration, and always fit back with our values.

Family responsibilities have also been barriers to women achieving leadership positions in the past. Women have historically been often overlooked for leadership positions once they have families, due to a perception that their attention and focus is less on work and more on family life and the household. This has very much changed over the past few decades, with a greater focus on shared household responsibilities, modern family dynamic and the evolution of what is considered the “traditional” work day, Monday to Friday, nine to five.

Women should be encouraged to have a work life balance that enables them to succeed both professionally and personally.

HM: What initiatives have you put in place at Sportsgirl to support your female staff to achieve leadership positions?

CC: For 70 years, Sportsgirl has embraced and supported Australian girls, in that pivotal period as they transition from girlhood to womanhood. Sportsgirl is a company which innately and truly understands Australian girls.

Our ‘Be That Girl’ manifesto represents something which Sportsgirl have always believed in – empowering girls to feel confident, capable and strong in their own identities no matter what they are trying to achieve.

Be That Girl is an attitude which applies equally to everything Sportsgirl does – and that includes our staff at Sportsgirl. Our head office team is 98 per cent women, each with their own unique gifts, skills, attributes and ways of thinking that make Sportsgirl the inclusive and diverse company it is today. Empowerment and belief in one’s self are values that start internally, and ones that Sportsgirl consistently embrace and nurture within our teams.

HM: Can you tell us a bit about your own experience being a woman leader? Times when you felt overlooked, and times when felt supported…

CC: When I first began my career in retail over 30 years ago, the corporate culture was very different to what it is today. It was very male-dominated, and had a perceptively non-inclusive and non-collaborative culture.

For the past 20 years, I have been fortunate to work for the Sussan Group, which is privately owned by Naomi Milgrom AO.

8 Mar, 2019
Amazon suppliers panic amid purge aimed at boosting profits
Australian Financial Review

The company is encouraging vendors to instead sell directly to consumers on its marketplace. 

Amazon makes more money that way by offloading the cost of purchasing, storing and shipping products. Meanwhile, Amazon can charge suppliers for these services and take a commission on each transaction, which is much less risky than buying goods outright.

The company is determined to boost profits at the core e-commerce business, even if that means disrupting relationships with long-time suppliers. Because many suppliers source products from manufacturers months in advance, they will have to quickly shift their sales tactics if the expected Amazon orders don't come in.

 

Amazon is determined to boost profits at its core e-commerce business, even if that means disrupting relationships with long-time suppliers. Robert Bumsted

"If you're heavily reliant on Amazon, which a lot of these vendors are, you're in a lot of trouble," said Dan Brownsher, Chief Executive Officer of Channel Key, a Las Vegas e-commerce consulting business with more than 50 clients that sell more than $US100 million $142 million) of goods on Amazon annually. "If this goes on, it can put people out of business."

Mr Brownsher is among several consultants who said Amazon's move had affected thousands of vendors.

Pushing more suppliers onto the marketplace is part of Amazon's larger effort to reduce overheads by getting more suppliers to use an automated self-service system that requires no input from Amazon managers.

"We regularly review our selling partner relationships and may make changes when we see an opportunity to provide customers with improved selection, value and convenience," Amazon said in an emailed statement, declining to answer specific questions about the action.

The abrupt cancellation of orders prompted panic this week at the ShopTalk retail conference that drew more than 8000 retailers, brands and consultants to Las Vegas.

Some attendees said Amazon stopped submitting routine orders last week for a variety of products, often without explanation. The drought continued this week, affecting more vendors and leaving them frustrated about the lack of communication from Amazon.

One vendor who has been selling products to Amazon for five years said he got a canned response when he inquired why his routine weekly purchase order never came through. The response gave him no clarity about his standing as a vendor, he said.

In recent years, Amazon has increasingly prioritised its marketplace. More than half of all products sold on Amazon in 2018 came from marketplace merchants, and revenue providing services to those merchants is growing at double the pace of revenue from the online store. Based on the target valuation of Amazon, the marketplace business is worth about $US250 billion, according to Evercore ISI analyst Anthony DiClemente, more than double the value of the online retail business.

Online marketplaces can offer greater selection than even the biggest of stores. Walmart, Target and Best Buy are all copying Amazon's marketplace model to increase online sales. Amazon will generate e-commerce revenue of $US317 billion this year, representing 52.4 per cent of all online sales in the US, according to EMarketer.

"If you're already drawing eyeballs to your website, you want to have all of the products your customers are looking for," said Frank Poore, CEO of CommerceHub, which sells online marketplace software. "You have to have a bigger assortment online than you do in the store."

Now more Amazon vendors will be forced to sell on the marketplace or risk getting stuck with unsold inventory, said Will Land, CEO of Marketplace Valet, an e-commerce logistics provider and consulting firm in Riverside, California.

"When you get used to those big cheques," he said, "it's hard to pull away."

8 Mar, 2019
Retail veteran to kick goals for Rebel
Australian Financial Review

Super Retail Group's new chief executive Anthony Heraghty has moved quickly to plug a leadership gap at its second largest business, Rebel Sport.

Mr Heraghty, who took the helm from Peter Birtles last moth, has appointed retail veteran Gary Williams as managing director of sports retailing to succeed Erica Berchtold, who resigned in October after being poached by leading online fashion retailer The Iconic.

Mr Williams, who starts on April 8, is one of Australia's most well-rounded retail and consumer product executives, having worked with David Jones and Country Road Group as chief customer officer, Myer, where he was head of strategy, Sass & Bide, Westfield and Coca-Cola Amatil, where he ran the Australian beverage operations.

Before coming to Australia 20 years ago, South African-born Mr Williams, a former professional soccer player, worked in sales and marketing in the US, UK, the Asia-Pacific region and South Africa with Reebok and Puma.

Since leaving David Jones and Country Road Group, where he was chief customer officer, in 2018, Mr Williams has been chief operating officer for Alceon Capital'sretail operations, which include womenswear retailer Noni B, online retailers Surfstitch and EziBuy and discount variety chain Cheap as Chips.

"Rebel is Australia's best-known sporting goods retailer and Gary is the perfect match for this business," Mr Heraghty said.

"With his extensive retailing history, he clearly understands the market and has an absolute commitment to putting customers first.

"His expertise in sports and consumer retailing, digital transformation and brand development will ensure that Rebel remains Australia's first choice for sports and leisure gear.

"He will bring fresh perspectives to Super Retail Group as we continue building our omni-retail strategy, delivering a world class in-store and online experience for our customers."

Mr Williams, who played in the South African Premier League for six years and is known in the retail trade as a trouble-shooter, said he was thrilled to be joining SRG at an exciting time.

Battle for market share

"Millions of Australians have grown up with Rebel and I am honoured to be the next custodian of this amazing business," he said.

Rebel's sales rose 4 per cent to $524 million in the December-half and earnings rose 8.3 per cent to $68 million, buoyed by synergy gains from the integration of the Amart brand. 

Rebel's online sales soared 41 per cent and now account for 11 per cent of sales. Rebel is aiming to lift online to 20 per cent of sales over the next five years, while opening another 20-odd bricks and mortar stores, taking its footprint from 161 to 180.

Rebel has so far managed to defend its turf from Amazon and global sports retailer Decathlon, but analysts believe it will lose market share over time.

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