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Industry: Buying Groups View from the industry


Intersport general manager Tom Foley dissects the opportunities for independent retailers from back-to-school business


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ndependent sports retailers have a natural affinity with local schools and their sporting needs, and with many Intersport members this includes the additional service of a school uniform shop either within the store or attached.


Being close to local customers through schools, clubs and sports associations brings opportunities throughout the calendar but none more so than during the ‘back-to-school’ period. Of course with children’s growth and development there is always the need for new kit and each new school year brings new sports and activity.


With the Government’s focus on children’s health and activity levels, schools have an ever greater level of sports curriculum and independent retailers should see this as a perfect opportunity to get closer to their customers and potential consumers at this critical time of the


year. With more retailers jumping on the bandwagon of offering cheap alternatives to uniforms and sports goods, the independent sports retailer can offer a fantastic range of products from the basics right through to technical equipment.


Working closely with brands, Intersport offers members access to


‘exclusive’ products from Nike backpacks to adidas football boots, Grays hockey sticks to Puma shin guards and from Canterbury rugby boots to Asics netball shoes. The exclusive products and sports categories will feature in consumer brochures aimed specifically at the back-to-school customer but will also communicate an authority across many differing sports categories, spreading a far wider message to the whole family.


Catching a consumer at a young age can lead to a lifetime of repeat buying patterns from a retailer, and as always a good experience spreads by word of mouth and in this day and age by text faster than any advertising – although this always helps.


Intersport stores are multi-sport specialist retailers and the back-to-school window offers exposure to a multitude of sports categories, which differ across the country. As independent


stores we are perfectly placed to maximise this opportunity to differentiate from the multiples whilst benefitting from being part of a buying group.


Tom Foley, Intersport UK general manager Intersport retail sales top €10bn I


ntersport has said group retail sales topped €10bn for the first time in 2010, growing nine per cent over the year. Football, running, fitness and outdoor pursuits have been cited by Intersport as reasons for the growth in retail sales across the 39 countries it operates in. Retail sales in 2009 reached €9.2bn. The 2010 figure include €1.8bn of sales of exclusive brands, with six per cent of the growth attributed to organic increases and three per cent put down to new stores, of which 200 new Intersport outlets opened last year to grow its worldwide retail estate to 5,320.


On a global level, Intersport said football, running, fitness and outdoor pursuits ‘disproportionately contributed’ to the retail sales increase. For instance, in Central Europe, Canada and the Scandinavian countries, winter sports were the main driving force for the positive development, it said.


Deepest winter and cold temperatures from November to February contributed in many countries to a double digit sales increase


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compared to the same period of the previous year. All winter categories have generally shown positive sales growth, Intersport said, with retailers in Denmark, Germany, France, Canada, Austria and Switzerland primarily contributing to this positive sales development. Last year also saw Intersport grow into new markets, such as Egypt, Saudi Arabia and Korea; three countries with growing populations and a high market potential. Intersport said 2011 has had a difficult start as warmer winter months have led to a decline in the important winter sport markets, albeit a decline offset by growing interest in football, running and fitness.


This weather-related weakness combined with a shortage in product stocks in several categories led, in most of the countries, to a two-digit sales decrease in January. In February business was doing slightly better, but still below the previous year. Then, in March, some of the countries increased their retail sales again compared to the previous year. However, with the exception of the FIFA Women's World Cup in Germany, where


Intersport will be the official sports shop to the organising country, there will be no major sports event in 2011.


"2010 was a record year for our group,” said Franz Julen, Intersport CEO. “Our strategy has proven its effectiveness once more. The strong brand and our business model, combining a uniform international approach and standards on one hand and leaving enough room for national adaptations on the other, grant us a very close proximity to the consumers Julen added: "2011 will be more difficult than 2010, but although the group is not growing that fast we will continue to gain further market share.”


www.sgb-sports.com


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