Just Group scopes out future

MELBOURNE:Just Group's recent takeover by Solomon Lew's Premier Investments could see renowned international fashion retailer Zara – for which Lew has held the license for around 10 years – opening for business in Australia. The potential arrival of the Spanish retailer is just one component of a slew of brand developments lined up for the company. In an announcement this week, Lew confirmed Just planned to expand its brand portfolio over the next year through franchise agreements with international brands.

The expansion might also include the acquisition of struggling rival businesses.

After the completion of the $800 million-plus takeover, Premier had a further $300 million in cash available for investment opportunities that would fit the Just Group model, Lew said.

He declined to elaborate on specific targets, but confirmed Premier was "actively monitoring a number of opportunities."

Meanwhile the announcement stated Just Group was repositioning for the long term, despite recent trading turbulence.

Just Group CEO Jason Murray confirmed that despite reporting a seven per cent lift in group FY08 sales to $861 million, Just's net profit slid 11 per cent to $54.5 million.

Declining consumer confidence due to rising interest rates and fears of an economic slowdown drove like-for-like sales down on the companies four key brands - Just Jeans, Jay Jays, Portmans and Jacqui E.

Womenswear brand Portmans brand had also underperformed in a tough market, Murray said, posting a five per cent fall in earnings before interest, tax, and amortisation to $90.2 million.

Murray will oversee a strategic review of the business and its major retail brands - Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander and Smiggle. The review is scheduled for completion ahead of Premier's annual general meeting next month.