JJB trades through challenging market
Sales up in competitive sector
January 15 2003
JJB Sports has reported total turnover for the six weeks to January 5 up 4 per cent in the core JJB business, with a like-for-like increase in turnover of 0.5 per cent.
The UK’s largest sports retailer saw total turnover in the 23 weeks to January 5 up 3.8 per cent, with a slight decrease of 0.6 per cent in like-for-like turnover.
JJB said there is still positive consumer demand across all its product ranges, but competition in the high street and relatively mild weather during most of the autumn/winter period, has had an impact upon the selling prices of clothing and footwear. Consumers also delayed purchases until closer to Christmas. The company said it had successfully cleared autumn and winter products in the New Year sales.
JJB has continued to open superstores and close smaller high street stores, opening 18 stores during the second half of the year and closing 10. Further superstore growth in 2003 is planned, with contracts exchanged for 18 sites, including eight with health clubs.
JJB also plane to open seven more Icon stores, focusing on fashion footwear and clothing for men, toad to the two opened before Christmas. These new stores will mainly replace existing small JJB stores.
The TJ Hughes chain saw total turnover for the six weeks to January 5 increase by 12.6 per cent, with like-for-like turnover up 3.4 per cent, For the 23 weeks, total turnover was 6.9 per cent up, with like-for-like turnover down 0.9 per cent.
JJB Chairman David Whelan said: “Trading conditions on the high street have continued to be highly competitive throughout the second half of the year including the important Christmas period, and this has adversely impacted upon the gross margins within JJB. However we had already factored these conditions into our forecasts and consequently the board anticipates that the Group profit for the current year will be in line with our expectations.
“With the current economic outlook and the levels of consumer debt, I do not anticipate any improvement in trading conditions in the short term. However, I am confident that, over the longer term, JJB still has solid growth prospects. Demand for active/leisure products continues to grow and our strategy of developing a superstore portfolio, with increasing health club interests, remains the appropriate policy. We have also made substantial improvements to our business capability in areas such as buying, distribution and IT, which will allow us to take advantage of any improved trading conditions in the future.”
