The Competition Commission in the U.K. has formally cleared Sport Direct’s acquisition of 31 shops from rival JJB Sports. The competition watchdog ruled that it was unlikely that there would be higher prices or a reduction in quality and
choice for consumers.
The ruling confirms its provisional findings, published last month.
The Competition Commission was asked to investigate the 31 purchases by the Sports World owner after the Office of Fair Trading raised concerns about five areas where it believed competition had been reduced.
Inquiry chairman Diana Guy said: “Sports Direct and JJB are undoubtedly each other’s closest competitors nationally and this has not changed as a result of the transfer of a relatively small number of stores.
“What we have found is that the prices and range on offer in any individual Sports Direct store are not significantly affected by whether there is a nearby JJB store or not but, rather, depend on the degree of overall competition between the two retailers at the national level.”
Sports Direct and JJB are the two largest specialist retailers of sports-related clothing, footwear and equipment in the UK. Sports Direct, which has more than 350 outlets, acquired the stores after financially-troubled JJB moved to reduce its portfolio through a disposal and closure program.
The date of the last store acquisition was December 2008.
The OFT’s report in May said the deals did not raise national competition concerns but it identified five areas – Basildon, Llanelli, Newport, Harrogate and Isleworth – where a lack of nearby alternatives and the limited prospect of new players entering the market caused competition concerns.
