period. Smiggle was a particularly strong performer, with sales for the stationary and accessory brand up by 30 per cent growth. These figures came amid the important ‘back to school’ trading period, as kids returned to in-person learning.   Meanwhile, iconic sleepwear brand Peter Alexander saw sales growth of over 15 per cent compared to last year – and up by over 80 per cent compared to the first half of FY20 on 1H2020 – with the group seeking overseas expansion via a partnership with a global e-commerce platform.  Despite the intensification of cost of living pressures, the group’s global sales were up by 7.7 per cent for the six weeks from February, compared to the second half of FY2022. According to Premier Retail CEO Richard Murray, Peter Alexander was described as a heritage and aspirational brand that would use all the levers at its disposal to navigate the challenging economic climate, and cost of living pressures. “There was a period where everyone was working from home, and you couldn’t get enough pyjamas. But as we return to a more normalised world, the results [Peter Alexander] continue to deliver is fantastic,” he said. Two winning horses According to Brian Walker, CEO and founder of the Retail Doctor Group, Premier Investments saw strong growth across all brands – with Peter Alexander and Smiggle as rising tides floating all boats. He highlighted the fact that sales for the two brands comprise about half of Premier Retail’s $905.2 million in global sales. He told Inside Retail that the relative drop in online sales –  just over $170 million, about 18 per cent of total sales, and down 12.5 per cent on the first half of 2022 – is a common trend across the retail industry, due to the return to in-store shopping. “Physical shopping went away because of Covid-19, but humans are social and want physical experiences where they can touch products and talk to people. [Absolutely] the return to the malls and high street is very consistent with other retailers,” Walker said. “When Covid-19 came around, Premier Investments were well prepared to pivot their business online. I think they reaped the benefits of that period. Now, we’re seeing that slide [but] they seem to be capturing it in that physical store visitation.”   Walker was also curious as to whether Premier Investments sales growth was largely due to an increase in customers, or because of the absorption of inflationary price rises. He also believes that the group has likely placed a significant amount of its operating capital in Peter Alexander and Smiggle. “If it were a horse race and you had five winning horses versus two winning horses you’d be more comfortable. But [they] have done a wonderful job with Smiggle over the years, and they’re repeating the same formula with Peter Alexander,” Walker said. “They’ve also got some brands like Just Jeans and Dotti that might need recapitalisation and upgrading [moving forward]. That would require capital, and I think you’re finding that they put the bulk of their operating capital into the horses that are winning – Peter Alexander and Smiggle.  It’ll be interesting to watch what happens to the other brands in the stable in the near future.” Maxing out the domestic market Walker believes that the group is well-placed to meet growing economic pressures due in part to its diverse portfolio, and the capabilities and competencies of Premier Investments’ management team. He added that Smiggle is the first brand that many children actually want, which makes it quite inflation proof.   “One of the things I looked for [in the half-year results] was excess inventory. That’s always a good sign that a retailer isn’t on top of things. But their inventory looked good,” he said. “The only potential risk I think I see is that, domestically, they’re starting to get pretty mature in a number of physical sites. If online growth gets up to 25 per cent plus on average across these brands, it makes the economics of physical store retail a bit more marginal, unless there’s a significant customer number increase,” Walker said. “But my general view is they’ve done a great job and are maxing out the domestic market physically. I think it’s one of the reasons they’re going global at such a [rapid] rate.” With an almost 26 per cent stake in Myer, Walker also said that it would make sense to put Smiggle and Peter Alexander in the department store in the future. “Why would you have a store in a shopping centre – like a Smiggle – that’s exposed to specialty rents, when you could put it in a department store, at department store deals. Those two brands are destination brands in my eyes,” Walker said.