Further trading downturn at JJB
Sports retailer struggling as market toughens
JJB Sports has reported a further downturn in sales as the conditions in the UK retail market deteriorate further.
In the 16 weeks to May 22, total turnover is down by 7.5 per cent, with a fall in like-for-like turnover of 7.7 per cent.
JJB said that trading conditions have continued to deteriorate since it last updated the market in April, with like-for-like comparisons up against strong sales of football replica kit last year in the build-up to the Euro 2004 competition. The company “will aim to proactively manage all costs in the light of declining levels of turnover.”
The company added that take up of memberships in the five combined health club/superstores which have been opened during the last 16 weeks “has been very positive and gives the Board confidence in its openings strategy”. Seventeen more openings are planned in the current year.
David Whelan, JJB chairman said: “In my statement of April 13, I said that trading conditions were as difficult as any that I had known for a number of years. I believe that these conditions will continue to deteriorate with the impact of higher interest rates and taxes, which reduce disposable incomes, and that the low level of confidence amongst consumers is going to take some time to reverse.
“In my opinion, the factors that would help to restore confidence amongst consumers would be a series of base rate cuts, accompanied by a reversal of the government’s continuing increases in direct and indirect taxation.
“In our retail business I remain supportive of the strategic approach we outlined in our preliminary results and I am confident in the enhanced profitability from our successful combined health club/superstore units.”
