JJB Sports struggles in difficult market
Like-for-likes up 1 per cent
July 11 2002
The highly competitive sportswear market has slowed sales growth at JJB Sports
The company’s total turnover for the 23 weeks to July 7 was up five per cent. However, like-for-like sales rose by just one per cent, and chairman David Whelan warned that trading conditions will be tough into next year.
While the World Cup lifted sales of England merchandise, the company believe this mainly replaced other products rather than dramatically increasing total sales.
Whelan said “Competition on the high street has gradually increased since last autumn and I therefore expect that profits for the first half will not match those achieved in the very strong comparative period last year. I expect difficult trading to continue into 2003. I believe nevertheless that JJB has performed satisfactorily in a very competitive clothing market and that JJB will continue to generate growth in the second half of this year.”
The increased competition means that JJB’s 9 per cent increase in trading space in the first half has not been matched by sales, leading to increased operating costs.
Turnover in the recently-acquired TJ Hughes business was 14 per cent up on the previous year, mainly through increased sales space.
JJB is the UK’s biggest retailer of sportwear and equipment, trading mainly from out-of-town locations. The company operates from 438 stores, including 256 superstores, and has seven JJB health clubs.
