Super Retail Group Limited’s [ASX:SUL] share price increased a further 1.42% upon opening this morning, even after admitting to underpaying its employees by $7.9 million.
The group who owns popular retail stores such as Rebel Sports and Super Cheap Auto, announced yesterday in its full-year results that team members involved in store set-up activities, responsible for the fit-outs and refurbishments of the group’s 600 plus stores, have been underpaid.
Despite the news, the groups share price increased nearly 10% in the past two days — which is significant considering it has risen just over 40% in the last six months.
What is Super Retail doing to resolve underpaying its staff?
The group have been quick to resolve the issue, stating in its results that a remediation program will start by next month, including interest to team members affected.
As reported by ABC, Super Retail Group managing director Peter Birtles said:
‘This was a genuine mistake that we deeply regret. This business prides itself on how we treat our team members and we have let them down,
‘We have taken all possible steps to ensure that affected team members receive what they are owed plus 5.5 per cent interest per year and that this issue does not happen again.’
Why didn’t Super Retail’s share price fall?
While although the group underpaid staff, its management of the issue has been noteworthy. Not only did they identify and address the issue themselves, but also moved quickly to a more than fair resolution. Taking full responsibility and showing sincere concern for those affected by the mishap.
Compare this to the recent headlines of Flight Centre and it is clear which company has better character.
In addition, Super Retail reported an increase in profit of 7% from last year to $145 million.
For Money Morning
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