RCG Corporation

Shares / Stock Code

RCG

Stock Exchange / Sharemarket

ax

RCG Corporation, formerly Retail Cube Limited, brings together three well-established, mid-sized, specialty retailers, each with distinct competitive advantages in its respective market. These retailers are The Athlete’s Foot, Amazing Paints and King of Knives.

The company was incorporated on 23 February 2004 and was listed on the Australian stockmarket (ASX) in July 2004. Its head office is situated in Stanmore, Sydney. In early 2007, the company changed its name from Retail Cube Limited to RCG Corporation Limited.

The Athlete's Foot was established under licence in Australia in 1981. Since then it has grown to become Australia’s largest retailer of athletic footwear and now operates over 135 stores across Australia and New Zealand, with stores in every state and territory. In August 2009 RCG signed new long term licence agreements for The Athlete’s Foot business in Australia and New Zealand under which it will pay no ongoing licence fees to the US licensor for an effective term of 249 years.

By acquiring these three retailers, the directors believe that RCG provides a platform that delivers to each group enhanced opportunities for growth and expansion whilst diversifying risk and strengthening its operating position. These outcomes are achieved, according to the board, through access to capital, franchise modeling and diversification.

Competitors for Amazing Paints consist of other hardware stores such as Mitre10 and BBC Hardware. For King of Knives, the company faces tough competition mainly from various department stores such as Myer and David Jones. Athlete's Foot competes mainly with sport stores such as Rebel Sport and various factory outlets. Customers include the general public.

Since January 2010, RCG has held the Australian rights to distribute the Merrell brand of footwear and apparel under an agreement with Wolverine World Wide Inc, the owner of Merrell. Since launching in the Australian marketplace 10 years ago, Merrell has built a significant presence in the outdoor, comfort, active lifestyle, and performance markets. RCG has set up a wholesale division, operating independently of its retail division, to maximize distribution to the many department store, specialty retail and outdoor retailers already carrying the Merrell brand as well as to new prospective customers.