By Claire Reilly
Betta Stores Retail has announced its results for the year ended 31 March 2012, posting a 60.5 per cent increase in group income which CEO Graeme Cunningham attributed to BSR’s new association with NARTA, as well as changes to its pricing model.
“The financial result for the year ending 31 March 2012 reflects the solidity of the business and the increased income returned to members,” said Cunningham.
“The additional benefits arising from the alliance with NARTA and the Group’s direct arrangement with supplier-partners are being promptly returned to members, resulting in the highest return of income since the Group’s inception in 2006.
“The return to retailers also included additional retail support funds that were set aside to assist the store rebranding initiative from Betta Electrical to Betta Home Living.”
According to Cunningham, the return to retailers “in the form of rebates and direct costs including advertising and marketing” was up to an all-time high of 79.4 per cent of total income, up from 70.7 per cent last year.
BSR noted that income was offset by a 15 per cent service fee discount and though it did not disclose full profit figures, the group also announced a decrease in profit before income tax of 5.7 per cent, which was “within the forecast range”.
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Cunningham also spoke positively about the changes BSR had made over the last year, aside from joining NARTA, including the unveiling of the Betta Home Living branding in September last year, and the launch of a new e-commerce enabled website.
“Advertising and marketing expenditure increased during the year as the Group expanded its program into online and social media whilst ensuring spend on traditional activities were maintained,” said Cunningham.
“Investment in people continued, with new roles created to recognise the importance of social media and to expand the merchandising team to accommodate new initiatives in that area, including business analyst and pricing analyst roles.”
“The Group’s move to online retailing has been particularly successful which has been strongly embraced by the stores since the sale is offered to the store closest to the originating order and the profit is returned to that store on fulfilment.”
Despite the well-documented difficulties facing the electronics and appliance retail industry, Cunningham said the BSR Group had finished its fifth full year of trading in a strong position.
“To compound the wider economic malaise, the electrical goods retailing industry has experienced continued price erosion in a number of key categories and seen a number of specialist retailers fail.
“When laid against this backdrop, the achievements of the Group and the growth achieved in the business, is all the more satisfying," he said. “With the recent addition of over 40 stores to the group we are well positioned for the future.”