Investors in JJB Sports Plc (LON:JJB) have received an unexpected boost, as the company announced ahead of its Preliminary Results that it has seen an improvement in its trading [1] . With the stores set to be fully stocked by April 2010 in time for the World Cup [2] , the next update which is due on 27 May 2010 will be eagerly anticipated by the market who will be keen to find out more about JJB Sports future strategy and its prospects.
The Office for National Statistics, have also issued the retail sales figures for February 2010, which show a rise of 2.1% in sales volumes between January and February [3] . What we must consider however is that January trading this year was severely hit by the snow and the increase in the VAT rate. Compared with February 2009 sales were up 3.5%, which does indicate signs of renewed confidence in consumer spending, however we must take into account that the year on year comparators are based on an extreme period of uncertainty for consumers, who twelve months ago tightened their purse strings. Going forward the remainder of 2010 is likely to be tough for the retailers as fears over; job security, increased cost of living, increased taxation, reduced public spending and credit card debts are sure to damage confidence.
JJB have also announced that Colin Tranter, who was employed by Sir David Jones, has decided to retire as retail and product director of JJB Sports to spend more time with his wife and grandchildren. The Company’s new Chief Executive, Keith Jones will take responsibility for the function in the short term. [1]
Disclosure: The Author holds shares in JJB Sports Plc.
[2] JJB SPORTS RNS, Trading Update, http://www.jjbcorporate.co.uk/pdf/28012010%20JJB%20Sports%20Trading%20Update.pdf
[3] Office for National Statistics, Retail Sales February 2010, http://www.statistics.gov.uk/cci/nugget.asp?ID=256
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4 Comments on this News show/hide all
I see the CEO has now been shown the door.
I'm not surprised. I went with my son to the local JJB store in Ipswich this week and, whilst there were three people clustered around the till as I walked into the near-empty shed (with the "manager" (hah hah) dispensing an unnecessary greeting as I walked in) when it actually came to trying to pay for something they had all buggered off - leaving just one person on the till and a queue of six people (all the customers in the shop were in the queue!!).
I investigated why this was - and discovered that they STILL haven't learned one of the lessons behind Tesco's success of the last two decades.....which is that if you have customers willing to pay for stuff then you actively summon all available staff to the tills to help them do that as fast as possible!!
Pathetic organisation and a deeply depressing shopping experience!
haha. That's not just JJB - it seems common of most shops I visit.
I now do and have done for many years nearly all of my shopping online and I don't regret it.
In reply to nigelpm, post #2
Not so around here....at least for those who do things right!
Next have just opened a new store in their "Home and Garden" format in the last few weeks. It is packed! The car parks around it are permanently full and the parking spills out onto adjacent streets. Now there are suggestions that M&S will open up close by in the near future.
All this is a big loss to Ipswich town centre, where the Labour local authority continue to try to drive all commerce away from the town, thanks to a completely useless shopping strategy (honed to uselessness over two decades!), high car parking charges, other anti-car traffic measures - and high bus fares. Frankly I don't care - Martlesham is much easier to get to and I haven't shopped in Ipswich for about 5 years, thanks to the depressing agglomeration of boring multiples, fast food joints and lardy tattoo'ed low-lifes.
In retailing, you reap what you sow (ask Norwich, Cambridge, Bury St Edmunds or Colchester - all of which are infinitely better than Ipswich and are regular recipents of Mrs ee's spending).
Twitter: @EliasJones1
RIP JJB
JJB shares could possibly have seen their last AIM trading day on Friday, as Mike Ashley now looks set to get what he has always wanted the JJB scalp. JJB should have shut out Mike Ashley’s SD in the 90’s when they had a chance, but stood back. These two have been direct competitors targeting the same customers and between them have historically had a very big cut of the replica pie. JJB has struggled to recover following Chris Ronnie ex Sports Direct tenure as CEO. Adding costs to the business and keeping the selling prices high verses SD in the same Towns 2007-2009 (the least I say the better)
Shame to see what has come of JJB, Dave Whelan cherry picked the best of the crop with the sports store and fitness business under the same roof last time round. Early 2000’s JJB was a darling of the City with a valuation of a billion and classified as the largest sports retailer in Europe following the acquisition of Sports Division from Sir Tom Hunter.
JJB Sports deal threatens 2,000 jobs
Almost 100 stores face axe if rival Mike Ashley's Sports Direct strikes deal to take over struggling retailer
http://www.guardian.co.uk/business/2012/sep/16/jjb-sports-deal-2000-jobs?newsfeed=true