Discount Superstores Group
| Company type | Privately held company |
|---|---|
| Industry | Retail |
| Founded | 2013 |
| Defunct | Template:End date and age |
| Fate | Receivership; follows other administrations |
| Headquarters | , |
Number of locations | 143 stores |
| Owner | Jan Cameron |
| Subsidiaries | Sam's Warehouse, Crazy Clark's. |
| Website | www.retailadventures.com.au |
DSG Holdings Australia Pty Ltd, operating under the name Discount Superstores Group, was an Australian discount variety retail chain established in 2013 following the liquidation of Retail Adventures. It managed 143 outlets branded as Sam's Warehouse and Crazy Clark's. The company was owned by the Australian-New Zealand entrepreneur Jan Cameron. On 1 July 2014, the group entered receivership for the fourth occasion within an eight-year span.
History
In 2005, Australian Discount Retail was formed when private equity firms Catalyst and CHAMP acquired the discount division of Miller's Retail (currently known as City Chic Collective) along with The Warehouse Australia from New Zealand’s The Warehouse Group. This transaction, financed by NAB Capital, ANZ, and BOS International, was valued at approximately A$200 million. The resulting business became Australia's foremost discount variety retailer, generating nearly $1 billion in revenue and operating stores across the country.
The enterprise operated multiple brands including Go-Lo, Crazy Clark's (with 275 outlets), Chickenfeed (39 outlets), and Sam's Warehouse (99 outlets). In 2008, all locations under The Warehouse banner were converted to Sam's Warehouse as part of the sale agreement.
Major competitors in the market included Kmart, Homeart, and The Reject Shop.
Facing severe financial difficulties, Australian Discount Retail entered voluntary administration on 20 January 2009, marking one of the largest retail failures in Australia with debts estimated at $201 million.
On 23 March 2009, Retail Adventures Pty Ltd, owned by millionaire Jan Cameron (previously owner of Kathmandu), acquired the business for an undisclosed amount, preserving roughly 10,000 jobs.
Retail Adventures itself went into administration on 27 October 2012. Jan Cameron obtained a license to continue operating the viable parts of the business, safeguarding approximately 5,000 full-time positions across 238 stores while closing others. Only Crazy Clark's and Sam's Warehouse remained operational; Chickenfeed shut down its stores in Tasmania and Victoria, with six locations sold to The Reject Shop in May 2013.
In March 2013, Jan Cameron purchased the viable assets from administrators for $59 million AUD and restructured the business under DSG Holdings Australia Pty Ltd, trading as Discount Superstores Group.
Project Simplify
Following the acquisition of ADR in 2009, Jan Cameron along with David Young initiated a long-term strategic initiative called Project Simplify. Young and his team recognized that the business model was excessively complicated and planned to implement reforms by 2013.
Inventory approach
Retail Adventures emphasizes the Pareto principle, concentrating on the 20% of merchandise responsible for 80% of revenue, rather than focusing on indicators such as sales per square metre. This fundamental assortment underpins the company's operations, with seasonal fluctuations guiding supplementary inventory. Each store has the autonomy to customize promotions, planning, and visual merchandising according to local preferences.
Chickenfeed brand
Originally, Retail Adventures managed four separate subsidiaries with unique strategies but aimed to unify them under the Chickenfeed banner, adopting the tagline "Bargains with a Smile." Chickenfeed outlets consistently outperformed other divisions by a minimum of 30% in sales per square metre, relying predominantly on television commercials instead of catalogue marketing. The company planned to extend Chickenfeed’s community-oriented promotional approach across all its brands. Nevertheless, following Retail Adventures’ move into administration, all Chickenfeed locations were designated for conversion into Crazy Clark's stores.
Staff retention
To combat elevated turnover rates typical in retail, Project Simplify implemented training initiatives and career progression schemes. Internal vacancies are regularly communicated through emails and noticeboards to promote employee growth within the organisation.
Logistics and supply chain
Project Simplify also seeks to maximize underutilized physical space by either enlarging Chickenfeed outlets or establishing third-party logistics services. The business employs parallel importing strategies to lower expenses amid streamlined trading operations. Simultaneously, it is enhancing technological infrastructure to improve stock allocation, demand forecasting, and inventory replenishment processes.
Administration
In October 2012, Retail Adventures voluntarily entered administration, with intentions to rebrand most Go-Lo and Chickenfeed stores as Crazy Clark's. Prior reports revealed substantial unpaid rent owed to landlords. This administration followed closures of stores across Tasmania, Queensland, and Victoria, including nearly twenty Chickenfeed branches; several were repossessed by landlords due to rent arrears. Subsequently, all Tasmanian Chickenfeed outlets were confirmed for closure.
Administrators permitted Discount Superstores Holdings Pty Ltd to license and operate the majority of stores while negotiating debt resolutions. In February 2013, Jan Cameron's Discount Superstores Group purchased the remaining assets of Crazy Clark's and Sam's Warehouse for $59 million AUD. However, by July 2014, Discount Superstores Group itself entered receivership.