Citing poor retail locations and limited growth capability based on prior liabilities, JJB Sports posted retail sales of £361.1 million ($570.2 mm) for the 53 weeks ended Jan. 31, 2010. This represented a 22.6% drop from £466.6 million ($849.7 mm) in the 52-week period ended Jan. 25, 2009.
Comparative store sales during the period declined 27.3%. Due to restructuring, the retailer has eliminated 900,000 square feet of retail space from the start of the year.
Gross margins for the British retailer declined 890 basis points to 38.4% from 47.3%, leading to an operating loss of £64.9 million ($102.5 mm), compared to a loss of £111.9 million ($203.8 mm) a year earlier.
“The year under review was the most difficult in the history of JJB Sports, when the business faced a fight for survival, said CEO Keith Jones. “The focus for 2010 is to turn around our trading performance, improve our operational execution in all aspects of the business, and lay the foundations for consistent growth in the future.”
“JJB’s recovery will be neither quick nor easy,” said Chairman John Clare. “The company suffered considerably through all the events of last year and it will take time to encourage customers back into our stores and rebuild our creditability as Britain’s leading sports retailer. “
JJB said all efforts are currently being exhausted with hopes of jumpstarting the once thriving retailer.
Plans involve the retailer working with key suppliers to increase and improve product ranges and availability and investing in an IT platform to link the inventory systems between its Web store and retail locations.
