Hallenstein Glasson keeps up the pace

Hallenstein Glasson says it has not yet been affected by the move up the fashion ladder by rivals such as Farmers and The Warehouse.

Group general manager Cliff Kinraid told analysts yesterday that the clothing retailer was keeping a close eye on developments - and making sure the look of its own stores stayed ahead of the pace.

"We don't want to fight at that end [of the market] - it's just not fun."

He said Farmers and The Warehouse had taken on credible advertising agencies. "But the experience [in stores] at the moment doesn't add up.

"At the moment, we don't think there's been any effect on us but we're watching."

Elsewhere among the competition, the surf-wear chains were still doing well, he said, but teen clothing company Supre was "slowing up" after starting "with a hiss and a roar ... " On Wednesday, Hallenstein reported an after-tax profit of $19.3 million for the year to August, up 12.4 per cent up on last year. Trading profit - stripping out a $1 million gain on the sale of property from the previous year's figures - was up 19.5 per cent and the retailer said it had now traded profitably in Australia for three consecutive quarters.

Yesterday, it said the next step in Australia would be to expand provincial locations and break into Queensland. Of 10 new stores it hoped to open this year, including one today, five would be in Australia.

Asked if the company felt it had the management depth to take on another brand if it was offered one, chairman Warren Bell said it did.

"We'd certainly look at it," he said.

Bell's remarks follow comments this week by Howard McDonald, managing director of Australian-based rival Just Group, that his company wanted to add another retail chain to its six brands.