Sports Direct in share fall

Merrill Lynch has come under fire from City investors over the growing crisis at Sports Direct, the retail empire controlled by billionaire Mike Ashley. The US investment bank advised Sports Direct when it floated on the stock market in February, but the shares have lost one third of their value after a thinly veiled profits warning last month.

Merrill has attracted flak because earnings are now expected to be below the £150m forecast at the time Sports Direct came to the market. There was renewed criticism of Merrill on Friday from shareholders reeling from the shock resignation of respected chairman David Richardson last Thursday.

In a statement, Richardson said that he had been 'unable to establish a strong working relationship' with the executive team, which includes Ashley, who netted £929m when he sold a 40 per cent stake at the time of the float.

www.sportsdirect.com
4 June 2007

Sports Direct to expand with flotation

Mike Ashley may more than double the size of his Sports Direct retail empire in Britain by 2011, and to open sizeable chains in Asia and Europe or the US, if he pushes ahead with a £2bn flotation. A decision on whether to float the business, in which Ashley would retain a 50 per cent stake, is due to be taken this week and follows a series of road shows to assess institutional demand.

The scale of his ambition to grow the company is revealed in IPO research produced by banks working on the float. Ashley is thought to want to open 600 Sports World stores in the UK, almost doubling the estate. He further plans to increase the size of his Original Shoe Co from 54 stores to 250, and open a chain of 25 Lilly-whites stores, according to the documents.

www.sportsdirect.co.uk
12 February 2007

Brunotti opens office for UK and Ireland

Dutch board sports retailer Brunotti is opening an office for its sales activities in the UK and Ireland . The company is joining forces with Blue Brands UK Ltd, which was established by Nigel Codron, former UK country manager for Oxbow. Codron will take responsibility for the label immediately and is currently presenting the autumn/winter 2006/7 collection.

Brunotti has made the move in an effort to step up European expansion and has chosen to work with Codron because of his extensive experience in the board sport market and his contacts in both the UK and Ireland . Henk Bergsma, managing director for Brunotti Europe: “With the professionalism and expertise of Nigel Codron and his team, we are confident that we are able to achieve significant sales growth in this important territory.” “(The management team at Brunotti) understand that each country has its own requirements and are fully supporting the development of a focused collection,” Codron said in a statement. In light of this new partnership, Brunotti has ended its cooperation with DNA Brands, the former Brunotti agent in the UK .

www.brunotti.com
26 January 2006

London Olympics to inspire designers

The London win for the 2012 Olympics will greatly inspire designer collections as much as it will influence high street sales. Stella McCartney was quoted as saying: "I would love to get the team looking extrafine in our gear," she said, referring to her new sports performance line, Stella McCartney for Adidas. Julien Macdonald said he was over the moon. "My favorite events are the gymnastics and tri-athletics, and my designs for the Games would be very glamorous." According to the London Retail Consortium, a body that represents retailers in and around the city, the Games, which will take place in London's East End, should generate an extra 521 million pounds, for the retail sector.

"Retailers generally benefit from this feel-good factor as it usually means people have a positive attitude toward everything - including spending their money," said a spokesman for the LRC. It's the first time since 1948 the Olympics have been held in Britain and, in 2012, London will become the first city to have hosted the modern Olympic Games three times. A spokeswoman for Topshop said the store would definitely mark the Games in some way, and was already gearing up to handle extra shoppers with an expanded store format that will be unveiled in October.

8 July 2005

Wimbledon Chic

No sporting event has the cachet of Wimbledon, the tennis championships that continue to inspire designers and collections around the globe. Keep your eye on the ball this (tennis) season with Prada's retro sporting whites including their belled trousers and embossed tanks. To add spin to your backhand, ditch the sweatbands and opt for Bottega Veneta's 14-karat gold bangles with quartz balls. Coach's fabric and leather carry-all also holds a pair of Chanel tennis shoes, matching visor in white or navy, and a can of Wilson balls.

When crowds thin at dusk, abandon that Dunlop maxply and opt for a glass of champagne in your Tod's flexible flats and a Pringle of Scotland cashmere. Game…set…match.

13 June 2005

JD sports target for thieves

JD Sports, the sportswear chain operated by John David Group, has tightened up its refund policy after it was targeted by thieves who used the company's gift vouchers as currency to buy drugs. Goods were stolen from one branch and returned to another in exchange for gift vouchers. JD Sports was tipped off by police who believed that the shoplifters were then exchanging the vouchers for drugs. Dealers were redeeming the vouchers at 50 per cent of face value. In one case, around £2,000 in gift vouchers were presented at a JD Sports store to be redeemed for products.

Tim Edwards, John David Group's loss control director, confirmed that JD Sports has tightened up its refund policy since January. Vouchers are no longer given in exchange for items brought back without a receipt. The group is also considering introducing electronic gift cards which have no face value, and generate transactions that are more easily traceable.

19 February 2005

Serena's new career

As if being one of the world's top tennis players is not enough, Serena Williams is now conquering the fashion industry. Last week she told reporters that she is a natural at designing. She admitted having to work hard at tennis, but not at designing clothes. Apparently the muscular Serena is a real pro when it comes to predicting trends.
She has launched her own label, Aneres - which is her own name spelled backwards - which she hopes to sell in Miami and Los Angeles. However, she is not about to give up tennis. Furthermore, she may even try her hand at a spot of acting.

15 November 2004

The smell of success

The Russian tennis champion, Maria Sharapova, is planning to launch her own scent. She has already indicated that she plans to design her own fashion line at some point in the future. Due to her hectic tennis schedule the 17-year-old admits that this project will not be very hands-on, but is confident that a scent will be produced that she herself will love to wear. She simply sends her preferences for scents and bottle design to the manufacturer, who will produce the end result.

20 October 2004

Converse Takes Concession In Carnaby Street

Retro sportsbrand Converse is to open its first London store as it takes over part of the Size? Flagship on Carnaby Street. The concession will cover the entire first floor womenswear section and will have its own store-fit and entrance. Size? Womenswear is also set to join men's the men's clothing section in the basement of the store, while women's footwear will be sold alongside men's on the ground floor. Current plans are for footwear to comprise 70 per cent of the product sold in-stores. The concession will open next month.

16 August 2004

Euro Championships To Fuel England's Retailers

The Centre for Economic and Business Research (CEBR) has predicted a GBP1bn spending boost for England's retailers in lieu of the Euro 2004 soccer championships. CEBR has forecasted additional spending on the England team reaching the quarter finals of the tournament, but says there will be a significant uplift whatever the team's fortunes.

Electricals retailers will benefit from increased sales of big screen and plasma TVs, while both pubs an supermarkets will see sales rise as customera either stock up on beer to watch the games at home, or arrange to watch with friends at the pub. Retailers such as Marks & Spencer, which are selling a range of Euro 2004 themed clothing and memorabilia, will also do well from the tournament.

The CEBR forecasts spending on TVs, clothing and memorabilia to total GBP450m, while alcohol sales across the off-trade and on-trade will benefit to the tune and extra GBP116m during each England's match.
The CEBR also warned that the distortion to retail sales data would make it hard for the Bank of England to judge the whether its recent rate rises have had the desire effect in cooling consumer spending.
It also said the estimated 60,000 fans heading for Portugal will take with them GBP12m that would otherwise have been spent in the UK.

1 June 2004

New retail concept for Sport 2002

French sporting goods buying group Sport 2000 France SA, revealed plans to start with a new retail concept in order to better compete with France's market leader Decathlon. The group said that the new concept will focus on stores in city centres offering fashion-forward shoes and clothing.

A chain of stores, selling space between 50 and 150 sqr metres, will sell lifestyle and sports shoes and another one, 200 sqr metres and up, will offer both shoes and clothing as well as a limited range of sports equipment. The first smaller only-shoe store will open in Montelimar on 4 April.

The move comes as part of Sport 2000's strategy to stand out against Decathlon, which started with a city store concept by the name of Decat one year ago. The new concept aims cities with at least 22,000 inhabitants and may be extended to other European countries.

March 25, 2003