Yesterday we saw two conflicting outcomes from retail issues - Super Retail Group attracted support from around two-thirds of its retail shareholders while online retailer, Kogan.com had to increase the size of its issue after being knocked down in the rush.
A strong boost to sales is expected for key business units of Super Retail from a resurgence in domestic travel. Moreover, market concerns regarding the company's balance sheet should be put to rest now with the company undertaking a $203m capital raising
Super Retail Group has become the third major retailer to announce staff underpayments this week, revealing on Thursday it has underpaid store managers and team members by $12.6 million more than it originally estimated.
The company posted a strong trading update, as automotive like-for-like sales growth accelerated to 7.5% in the five weeks to March 21. Stores have been closed in New Zealand for a minimum of four weeks.
Credit Suisse suspects investor debates will be heightened after the results, with rising costs countering strong growth in sales revenue and resulting in a flat profit outcome from the automotive and sports divisions.
Credit Suisse considers it likely investors will look through the fire-related impact on stores in the first half. Nevertheless, more frequent and extreme events have the potential to affect retailer performance.