Acquisitions and boosted profits are the latest news from RCG, the parent company of 136 strong The AthleteÕs Foot franchise network.
The AthleteÕs Foot has recorded total sales growth of 15 percent to $166.7 million and like-for-like stores sales growth of 11 percent.
Ivan Hammerschlag, chairman of RCG Corporation which has announced a record annual profit, said “The AthleteÕs Foot has a unique and defendable market position based on selling fit and function, rather than price and fashion. It is now an instantly recognizable brand in the Australian market place and one that is synonymous with quality products and outstanding service.”
Sales from the four new large format stores have exceeded expectations, with like-for-like sales up at each store more than 30 percent.
“We are delighted with the performance of our new bigger format stores,” said Hammerschlag. “We believe that this is the future direction for the business.”
RCG has been awarded the Australian rights to distribute the Merrell brand of outdoor, comfort, active lifestyle, performance footwear and apparel, from January 2010. This business is expected to turn over more than $12 million in its first year of operation.
The new brand complements the increased product range in the new format The AthleteÕs Foot stores and a new chain for the group, the Shoe Superstore.
RCG paid approximately $1 million (including working capital) for the four year old, three-store chain of branded, comfort and lifestyle foot wear stores and will expand it as a destination brand in high traffic shopping areas rather than malls.
Hammerschlag said “Shoe Superstore presents an excellent opportunity for us to capitalize on the emerging branded comfort footwear market. We believe this is a highly underserviced sector of the footwear market, with very few retailers providing a legitimate offering in this space.
“By offering range and value to destination shoppers, we believe that Shoe Superstore is a complementary and synergistic business to The AthleteÕs Foot,” he said.