Blacks Leisure will close about 45 unprofitable stores over the next two years. The company made the announcement shortly after it revealed sales will be flat for the 2006 year, which ended at the beginning of February. The retailer said these closures relate mainly to small, overlapping or acquired stores, which predominantly trade under the Millets name. The closures will result in a charge of about £14 million ($27.5 mm), of which £3.5 million ($6.9 mm) is expected to be in cash during the 2008 financial year.
The outdoor retailer has reviewed the Out of Town store opening program, which will now be limited to just two openings scheduled for the 2008 financial year. The group said it will “re-commence the growth of this format where appropriate.” Blacks added that it is in the midst of thorough operational review focusing on enhancing “products, pricing and customer proposition” across all its store banners. To assist in this, non-executive director Don Trangmar will relinquish his present position and take up the role of consultant to the commercial and product development teams, on a part-time executive director basis. Trangmar worked for Marks & Spencer until 1998 and has spent the past 15 years as a main board director.
Blacks Leisure chief executive Russell Hardy said, “We remain confident that our market leadership in the growing outdoor market, combined with our rebalanced ranges for 2007 and the operational measures announced today will help drive a significantly improved performance for the next year.”
