JJB Sports reveal sales slump
JJB Sports ruled out any quick fix to its trading problems today after revealing like-for-like store sales had slumped by more than a quarter.
The Wigan-based sportswear chain said recent uncertainty over its future meant suppliers had been reluctant to deal with the firm, leaving it with stock levels 50% below the previous year.
JJB last month agreed a rescue deal with landlords to stave off administration, but given that the time between the ordering of products and its delivery can be up to six months JJB said it did not anticipate any significant improvement in sales until the final quarter of this year.
As well as low stock levels, JJB blamed the 25.8% decrease in like-for-like store revenues in the 16 weeks to May 17 on negative publicity surrounding the company and the difficult trading conditions.
David Jones, who became executive chairman in January, said JJB was now on a more stable footing.
However, the former Next chairman added: “I have experienced difficult times in retailing before, but this is the biggest challenge that I have ever had. We have to revitalise the business in the worst recession in recent times.”
