JJB pledges to get tough in face of downturn
JJB Sports warned today that it may launch a price war on the high street to encourage shoppers to start spending again.
Hurt by a 4.3% fall in like-for-like revenues during the 10 weeks to Sunday, JJB said it saw “very few encouraging signs” of an improvement in retail conditions.
Clothing sales were under the most pressure and JJB said it was continuing to feel the competitive heat at a time when rival Allsports went into administration.
Announcing that operating profits fell by a third to £17.6m (€25.6m) during the six months to July 31, JJB xecutives said the second half would be equally as tough as the first on the UK high street.
The company said: “To remain competitive, it may well have to lead a more aggressive pricing policy.”
Like-for-like sales fell 8.8% during the half year, although a third of this decline was down to weaker demand for replica England kits in the absence of a major sports tournament to rival the Euro 2004 football championships.
In addition, two of the biggest Premiership teams decided to launch their new kits after the end of July.
However, new chairman Roger Lane-Smith has pledged to stick by the business strategy of founder David Whelan whom he succeeded earlier this year.
That involves developing more superstores that are combined with health clubs as well as supplying top brands such as Nike and Adidas alongside cheaper ranges of its own brands.
JJB has 441 stores in Ireland and the UK comprising 195 out of town superstores, 106 high street superstores, 113 smaller branches in town and city centres and 27 other outlets.
