Sports Direct profits up 25%

The media are putting the recent improvement in performance at Sports Direct, the sports clothing retailer, down to the ‘Olympic effect’.  In the six months up to 28th October, revenues were up 23% and profits 25%.  But as this BBC article makes clear, there are other factors that may be even more influential in the long term.  The first is that one of their biggest rivals – JJB Sports – went into administration, thereby reducing the number of competitors in the market.  Moreover Sports Direct were able to purchase, at a good price, 20 retail outlets in locations where they were not well represented.  Second, the company has developed its online retail offer and has seen significant sales being driven through this channel.

This entry was posted in Chap 02 Winning Customers, Sector: Retail and tagged , . Bookmark the permalink.

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