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Supercheap Auto

Supercheap Auto is a leading specialty retailer specializing in automotive parts, accessories, tools, and DIY products for home, garage, and outdoor use, with a product range exceeding 10,000 items including car batteries, air filters, coolants, marine equipment, and motorbike gear. Founded in 1972 by Reg and Hazel Rowe as a mail-order for automotive accessories, the company opened its first in , , in 1974 and has expanded to operate 352 stores across and New Zealand as of June 2025. The company's early growth was marked by a name change to Super Cheap Auto in 1981 and expansion beyond , including into in 1997. Its 100th store opened in 2002. In 2003, Supercheap Auto entered the market by launching seven stores in a single day and acquired Marlows, adding 20 additional locations. By 2004, it had reached 200 stores and listed on the under the name Super Cheap Auto Group Limited, which later rebranded to Limited in 2010, with Supercheap Auto as one of its four core brands alongside , BCF, and . Today, Supercheap Auto employs over 3,800 team members and serves as a key player in and New Zealand's retail sector, emphasizing quality service parts, performance enhancements, and maintenance solutions for vehicles. The retailer supports motorsport initiatives, including partnerships with teams like and , aligning with its focus on automotive enthusiasts. As part of , it contributes to a network of 782 stores across the region as of June 2025, prioritizing customer loyalty programs and integration to drive sales growth.

History

Founding and Early Years

Supercheap Auto was founded in 1972 by Reg and Hazel Rowe as a home-based mail-order business operating from their residence in , . In 1981, the company changed its name to Super Cheap Auto. The initial operation focused on catalog sales of automotive parts and accessories, such as car batteries, oils, and basic tools, targeted primarily at local customers seeking affordable DIY solutions. In 1974, the company transitioned to physical retail by opening its first store in , , which marked a significant shift from the mail-order model and helped achieve a turnover of $1 million that year. This expansion allowed for direct customer interaction and broader product demonstration, building on the growing demand for goods in during the early 1970s. The early years were shaped by the competitive landscape of the Australian auto parts market, where established suppliers dominated, compounded by economic pressures like and fluctuating that influenced small entrants like Supercheap Auto. Despite these hurdles, the Rowes' focus on value-driven offerings laid the groundwork for steady local growth.

Expansion and Milestones

Following its origins as a mail-order business in and the opening of its first retail store in in 1974, Supercheap Auto experienced rapid growth through the and , expanding from a handful of locations in to multiple states. By 1993, the company operated eight stores in with annual sales of $19.4 million. In 1997, it entered through organic expansion, followed by expansion into in the early 2000s. This period of aggressive store openings across , , and culminated in the milestone of reaching 100 stores in 2002, including initial expansion into . Supercheap Auto's international growth began in 2003 with the launch of its first seven stores in , all opened on the same day, including the initial location in . In the same year, the company acquired Marlows, adding 20 stores in . By 2024, the company had expanded to over 40 stores across . In the 2000s, Supercheap Auto introduced a larger superstore format to accommodate growing demand, with stores approximately 1,000 m² in size. These larger formats supported broader product ranges and enhanced customer experiences in key regional areas. As of August 2025, Supercheap Auto operated 352 stores across and . The company achieved a significant sales milestone in 2015, contributing to the Super Retail Group's total sales exceeding $2.2 billion, with Supercheap Auto's performance driving much of the automotive segment growth. During the 2020 , Supercheap Auto adapted by accelerating capabilities, resulting in strong online sales growth and like-for-like sales increases of 21 percent compared to pre-pandemic levels. Looking ahead, the 2025 annual reports highlight ongoing plans for digital integration, including enhanced omni-channel strategies and online sales expansion to support further operational scaling.

Operations

Retail Formats

Supercheap Auto's standard store format is designed for urban and suburban locations, typically measuring around 700 and featuring organized aisles for automotive parts, tools, and accessories, complemented by in-store services such as fitting, wiper , and vehicle diagnostics. Smaller variants of approximately cater to higher-density areas with similar layouts but condensed inventory displays. These formats emphasize customer convenience through clear navigation and dedicated service zones for quick fittings and of batteries and oil. The first Supercheap Auto store, opened in 1974 in , , served as the precursor to these modern retail models. The Supercheap Auto Superstore format represents a larger-scale option, spanning about 1,000 , with expanded sections for inventory, interactive demonstration areas for tools, and enhanced services including oil changes, aimed at regional markets with greater demand for bulk purchases and extended offerings. Notable examples include superstores in Oxenford, , and Alice Springs, , which incorporate optimized layouts for increased foot traffic and larger display capacities. This format supports higher sales volumes by providing more space for specialized zones and features. Recent developments include the introduction of "Next Generation" stores with expanded floorspace for categories like tools and 4WD accessories, dedicated service zones, and improved click-and-collect areas. Click-and-collect services have been integrated across all store formats since the early , enabling customers to order online and pick up items in-store, enhancing omni-channel accessibility and accounting for a significant portion of online sales—81% in FY25, totaling $125 million. In response to 2025 sustainability trends, new store builds and fit-outs increasingly incorporate energy-efficient designs to reduce and align with environmental goals.

Products and Services

Supercheap Auto specializes in a wide array of automotive products, including parts such as , air filters, and batteries, as well as accessories like car covers and seat covers. The retailer also stocks lubricants, encompassing engine oils and coolants, and an extensive selection of tools ranging from hand tools and power tools to diagnostic equipment. These items are available across their network of 352 physical stores in and as of June 2025, supporting both professional and DIY customers. The product assortment features a blend of globally recognized brands and Supercheap Auto's proprietary lines designed for budget-conscious buyers. Major brands include for braking systems, wiper blades, and spark plugs, and for engine oils, transmission fluids, and coolants. Complementing these are in-house brands like ToolPRO, which offers affordable hand tools, power tools, and storage solutions such as tool boxes, exclusively available through Supercheap Auto. In addition to sales, Supercheap Auto provides several in-store services to enhance customer convenience, including fitting for , wiper blades, and bulbs, along with vehicle diagnostics and . and oil recycling programs are also offered at no extra cost, promoting environmental responsibility. The Supercheap Auto , free to join, delivers benefits such as $5 credit for every $100 spent on eligible purchases annually, exclusive , receipt-free warranties, and discounted in-store fitment services. While maintaining a core focus on automotive offerings, Supercheap Auto has expanded into limited non-automotive categories, including basic supplies like covers, batteries, and oils, as well as accessories such as bike racks and carriers. These additions represent a smaller portion of inventory, with automotive products and related tools comprising the majority of stock. Supercheap Auto's platform provides a comprehensive of its inventory, enabling 24/7 browsing and purchasing with options for or click-and-collect pickup, including same-day availability in major urban areas where stock permits.

Corporate Structure

Ownership and Governance

Supercheap Auto was initially established as a private enterprise by its founders, Reg and Hazel , who operated it as a mail-order automotive accessories from their home starting in 1972, transitioning to retail stores by 1974 and rebranding to Super Cheap Auto in 1981. The company remained under private ownership by the Rowes and associated investors through its expansion in the and , growing to eight stores in by 1993 with annual sales reaching $19.4 million, before preparing for public listing. In 2004, Super Cheap Auto Group Limited was formed and listed on the Australian Securities (ASX: SUL), marking the end of its fully private status and enabling further growth through acquisitions such as the purchase of CampMart's four stores in 2005. By , following the acquisition of Ray's Outdoors (38 stores), the parent entity was renamed Limited, integrating Supercheap Auto as its flagship automotive subsidiary alongside emerging brands like BCF. This restructuring solidified Supercheap Auto's position within a diversified portfolio, with the Rowes retaining significant shareholdings as major stakeholders. As of 2025, Supercheap Auto operates as a wholly owned subsidiary of Super Retail Group Limited (ASX: SUL), which oversees multiple retail brands including BCF, Rebel, and Macpac, with a total network exceeding 700 stores across Australia and New Zealand. Governance is directed by Super Retail Group's board of directors, which establishes strategic oversight, risk management, and compliance frameworks applicable to all subsidiaries, including Supercheap Auto. Supercheap Auto's day-to-day management is led by its Managing Director, who reports to the group's executive leadership, including the Chief Financial Officer; the current interim Managing Director of Supercheap Auto is Ben McConnell, appointed November 10, 2025, following the resignation of Benjamin Ward. The current Group Managing Director and CEO is Paul Bradshaw, appointed effective November 1, 2025, following a period of transition after the dismissal of predecessor Anthony Heraghty. Supercheap Auto employs more than 3,800 staff across its retail stores, distribution centers, and headquarters in , , forming a key portion of Super Retail Group's overall workforce of nearly 16,000. The subsidiary emphasizes employee policies on , alongside health and protocols, as outlined in the group's 2025 Responsible Business Report, which includes zero-tolerance measures for and , and regular reviews of standards to support a respectful environment.

Financial Performance

Supercheap Auto, as the largest segment of Limited, contributed approximately 38.6% to the group's total of $3.88 billion AUD in FY2024, with its own reaching $1.50 billion AUD. In FY2025, this contribution stood at 37.6% of the group's $4.07 billion AUD , as Supercheap Auto's grew to $1.53 billion AUD, reflecting a 2.1% increase driven by store expansions and omni-channel strategies. Historical for Supercheap Auto has shown steady , rising from $1.12 billion AUD in FY2020 to $1.53 billion AUD in FY2025, with an average annual rate of approximately 6% over the period from 2015 to 2024, supported by network expansion and a surge in online that increased by over 50% in the immediate post-2020 years before stabilizing. Profitability in the auto segment remained robust, with Supercheap Auto reporting segment EBIT of $222 million AUD in FY2024, yielding an EBIT margin of about 14.8%, though the PBT margin dipped to 13.5% due to rising operating expenses. By FY2025, EBIT fell slightly to $218 million AUD, with the PBT margin at 12.9%, influenced by higher costs but offset by improvements through promotional discipline. Investments in efficiency, including a $10 million automated for Supercheap Auto, have contributed to ongoing cost savings in sourcing and , though specific annual figures are integrated into broader group initiatives that mitigate inflationary pressures. As of November 2025, Super Retail Group's stood at approximately $3.61 billion AUD, underscoring the segment's role in the parent's consolidated financial reporting. E-commerce sales for Supercheap Auto reached $125 million AUD in FY2025, accounting for 8% of and marking a 3% year-over-year increase, as part of a post-2020 digital pivot that elevated online penetration from 7% in FY2020. The segment faced challenges from in 2023-2024, which drove up wages, rent, and parts pricing, increasing cost of doing business by about 4.5% and compressing margins, though these were partially offset by expansions in private label products and efficiency gains in the .

Sponsorships and Marketing

Motorsport Involvement

Supercheap Auto secured naming rights for the from 2005 to 2020, rebranding the event as the Supercheap Auto and enhancing its visibility to millions of viewers annually through television and digital broadcasts. The company has supported the —formerly known as the V8 Supercars Championship—as a since 1997, initially focusing on partnerships and evolving into an parts supplier that provides essential automotive components for race operations. Key sponsorships include Tickford Racing from 2016 to 2020, where Supercheap Auto backed drivers like and Jack LeBrocq with prominent livery placements, and ongoing support for , featuring the brand on multiple cars in the series. In 2021, Supercheap Auto became the naming rights sponsor for the TCR Series through a five-year deal with the Australian Racing Group, rebranding it as the Supercheap Auto TCR Series and supporting the category with branding and product integration. The partnership extended into 2025 as the official retailer, maintaining visibility across events. Supercheap Auto has provided backing for various Supercars events, including on-site product displays at racetracks to engage fans directly with automotive parts and accessories. As of 2025, the company continues its motorsport commitments, including a wildcard program with Triple Eight Race Engineering for the Supercars Championship and sustained involvement in TCR Australia, aligning with broader brand promotion in Australian racing.

Advertising and Promotions

Supercheap Auto's advertising and promotional efforts emphasize accessible DIY automotive solutions, customer rewards, and online engagement to build among everyday consumers. The company's campaigns, such as the long-running "Best Performing Oils" series launched in the mid-2010s, showcase product demonstrations and practical tips for vehicle maintenance, airing on major networks to highlight affordable oils from brands like , Nulon, Penrite, and . These ads, often featuring humorous scenarios with spokesperson Nathan Murray, complement broader efforts including sponsorships. Central to Supercheap Auto's promotions is the Supercheap Auto Club , initially launched as Club Plus in September 2012 to provide members with price guarantees and exclusive benefits. Refreshed in July 2025 with the "Spend & Get" feature, the free membership now rewards $5 credit for every $100 spent on eligible purchases during calendar-year earn periods, with credits expiring after 28 days; additional perks include club-exclusive pricing on select items, receipt-free warranties, and notifications for sales and competitions. As of the fiscal year ended June 28, 2025, the program has 4.9 million active members, accounting for 72% of total sales and driving increased through points-based rewards. Annual events like tool sales, promoted via TV and in-store displays, generate significant spikes in tool and accessory purchases, with dedicated campaigns such as the 2022 "Pitch Black" promotion emphasizing deep discounts on essentials. In , Supercheap Auto maintains active channels on and since at least 2012, posting tutorials on part installations, DIY maintenance tips, and product demos that have collectively amassed millions of views. Content focuses on empowering users with step-by-step guides for tasks like oil changes and usage, often tied to seasonal promotions. The company partners with non-racing influencers and auto content creators through programs like Hoozu's bespoke initiatives, which since 2020 have produced diverse and content for product reviews in lifestyle and cleaning categories, expanding reach to broader audiences. In-store promotions include hands-on events such as tool workshops and weekend sales, like the recurring 25% off all tools offer, designed to encourage direct customer interaction and upsell accessories. For , Supercheap Auto has shifted toward personalized online discounts via the account portal, integrating targeted and alerts for app-accessible deals on batteries, filters, and tools, enhancing convenience without physical store visits.

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