Big retailer has right goods at right price - analyst
Updated at 3:48 pm on 9 May 2012
Forsyth Barr analyst Guy Hallwright says listed retailer Briscoe Group is leading the sector in terms of businesses doing well despite sluggish economic conditions.
The group reported a rise in first quarter sales as its 79 shops in the Briscoes, Living and Giving, and Rebel Sport chains made $102.5 million in sales, which is 6.46% higher than the same period last year.
On a same-store basis, the group's sales were 7.66% higher. This comparison excludes six Living and Giving stores that closed in the past year and also stores in Christchurch that were disrupted after the 22 February earthquake.
Sales at homeware stores increased 5.72% to $66.1 million, while sporting goods sales increased 7.84% to $36.4 million. The three chains earned $102.5 million in the first quarter, a lift of 6.46% on the same period last year.
Managing director Rod Duke says Briscoe Group benefited from consistent quarterly rises in the past year.
"We seem to have made significant gains in the market at the expense of perhaps a number of other retailers," he says.
"The marketing campaigns and colour catalogues that we put into the market, the merchandise assortments that we give to people - it all seems to be resonating particularly well with our customer base".
Mr Hallwright says Mr Duke's company is providing the goods that consumers want.
"It comes down to the right product mix and the right pricing," he says.
"There has been quite a lot of promotional activity, but (Mr Duke) is saying that gross margins are tracking pretty strongly".
When the first quarter results were posted on Tuesday, Briscoe Group's share price finished the NZX trading session up 4 cents at $1.57.
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