Shares in retailing conglomerate Super Retail Group are approaching a 52-week high following a note from Citi analysts naming the company as one to watch.
The company, which operates retailers such as Supercheap Auto and Rebel Sport, was picked by analyst Craig Woolford as the main blue chip retail stock set to benefit from the slow-down in growth from international retailers in Australia.
In a note released on Wednesday, Mr Woolford said competitive pressure from companies such as H&M, Zara and Aldi was easing, allowing for growth in local ASX-listed retailers.
“In the past, retail sales growth for ASX-listed retailers had been impacted by store growth from international peers,” Mr Woolford said.
“In non-food retail, fewer store openings comes at a time when online growth is accelerating for ASX-listed retailers and demand should improve in 2020.”
Super Retail was the only large-cap retailer Citi believes will most likely benefit, and also named Accent Group, Nick Scali and Michael Hill among small caps. Shares in Super Retail are up 2.83 per cent to $10.32, just 11 cents off a 52-week high of $10.43.
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