SYDNEY: RCG Corporation, the company in charge of The Athlete's Foot Australia, has reported a 13 per cent total sales growth for the retail chain in the four months to October 2009.
The company reported a ten per cent like-for-like sales growth across all stores for the period. It had a 30 per cent like-for-like sales growth for its large format stores and nine per cent for its traditional stores.
Its like-for-like growth for the first two weeks of November was 15 per cent.
The results follow RCG Corporation's full-year financial results for 2008/09, which saw the company achieve a record net profit before tax of $7.6 million, up 27.5 per cent on the previous year's result of $5.97 million. The Athlete's Foot network recorded total sales growth of 15 per cent to $166.7 million.
As reported in Ragtrader in September, the company has embarked on an aggressive strategy to dominate retail and wholesale distribution in the comfort and lifestyle footwear sectors.
The footwear stable acquired the Australian rights to distribute Merrell, a brand comprising outdoor, comfort and active footwear and apparel, effective January 1, 2010.
It has secured the entire Merrell management and sales team and is finalising the set up of the new wholesale and distribution structure.
RCG Corporation executive director Hilton Brett said the company believed Merrell had the opportunity to grow within existing and new customers. Brett said he anticipated the brand would turn over in excess of $12 million in its first year.
Opening Merrell retail stores nationally would be a key focus, he said, and the company is planning one new store in 2010 and 12 stores over the next few years in high-profile shopping centres.
Ragtrader also reported in September that the company has acquired Shoe Superstore for an initial upfront investment of $1 million, including working capital. Shoe Superstore has three stores in New South Wales as well as a transactional website. It stocks a number of comfort and lifestyle footwear brands including Birkenstock, Hush Puppies, CAT, Kumfs and Florsheim.
Brett said the company aimed to open Shoe Superstore outlets in high-traffic precincts nationally over the next five years. It would also focus on ramping up its online transactional component.
There are 136 The Athlete's Foot stores across Australia and New Zealand. It has recently signed a new 249 year licence to the US licensor for an upfront amount of US $6.2 million.