| JJB Sports sees profit slide |
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| Sunday, 30 September 2007 | |
 JJB Sports which issued a profits warning nearly three weeks ago, is planning to scrap its 165 store-in-store deals with Nike and Adidas and start selling more own-brand sportswear labels in an effort to stem falling profits and sales.
Chris Ronnie, the new chief executive, said he wanted JJB to go back to becoming 'serious about sport', arguing that the sports chain had lost its way. “I think we have been hampered because we don't know who we want to appeal to,” he said, reflecting on a 38 per cent fall in profits during the first half of its financial year.
Mr Ronnie, who has worked under Mike Ashley, the founder of rival Sports Direct, said his first steps would be to improve womenswear lines. He has signed a five-year deal with the Champion label, one of the top five brands in the US, and is in talks to land another three own-label lines. He has also opened a training academy and will be putting in a new staff incentive scheme, which runs down to the shop floor, ahead of Christmas. The sporting goods retailer said pre-tax profits for the six months to 29 July sank 38.3% to £11.2m. In a bid to turn around its fortunes and cut its reliance on big sporting events JJB said it would strive to become the "sports retailer of choice". As part of the shake-up it will revamp stores, launch more own-brand goods and increase its health club offering. "Although we expected a fall in profits with no major football tournament this year, these results are still disappointing," said chairman Roger Lane-Smith. Earlier this month, JJB had warned that falling revenues and sales - particularly replica kit sales - would affect its earnings |
