Super A-mart
| Sector | Consumer and Retail |
|---|---|
| Industry | Furniture and Bedding Retailer |
| Location | Australia and USA |
| Investment Date | June 2006 |
| Original Deal Size | A$478m |
Company Description
Super A-Mart is Queensland and Northern NSW’s largest discount furniture and bedding retailer with a 20% market share. The business was founded by John Van-Lieshout in 1972. Under Ironbridge ownership it has grown to a network of 31 “big-box” retail outlets of up to 10,000m2 each with a presence in Queensland, New South Wales, Western Australia, South Australia and Victoria.
Investment Rationale
Major attractions of the opportunity were:
- Well known brand – operating since 1972.
- Strong market position – 20% market share in its home market.
- Differentiated customer proposition – “everyday low prices, wide range and immediate availability”.
- Large and growing market – industry turnover of $10bn p.a. with the opportunity to roll-out up to 80 stores nationally.
Ironbridge Value Added
Ironbridge has been heavily involved in the business to assist Management in recovering sales and profit momentum following the Financial Crisis and setting the business up to realise its significant future growth potential. Key areas of focus have included:
- Recruited new Management team.
- Conducted network review demonstrating the potential for an 80 store portfolio.
- Review of product category performance, range architecture and price point strategy.
- Review of marketing strategy and development of alternative promotional strategies to generate additional foot traffic.
- Assisted and supported the continued roll out of stores, including the first store in the Victorian market.
- Development of hedging strategy and policy implementation.
