JJB Sports reveal store closures

One of the country’s best-known sportswear firms, JJB Sports, has announced a 70% plummet in profits and is to close 72 stores which will result in 800 job losses.

The company said in the 12 months to 31 January, revenues came in flat at £811 million as it lost £23 million of sales from England replica kit compared with the previous year, which included the World Cup.

Chief executive Chris Ronnie said we expect current difficult market conditions to continue to affect consumers in the short term.

The sportswear firm is under pressure from rivals such as billionaire Mike Ashley’s Sportsworld chain.

Chris Ronnie said the 72 stores were closing because they had been identified as those outlets unlikely to be making a profit.

Many of these stores compete against other newer and larger stores that we trade from in nearby locations, said Mr Ronnie.

We believe these closures will leave us with a more profitable store portfolio. We believe the initiatives we are taking will result in a stronger group trading position in the medium term, he continued.

The news follows that from Ethel Austin who has met with administrators to discuss its future. The discount fashion retailer warned that even if a buyer can be found, many of its staff will be laid off.

Increasing mortgage repayments and household bills have dampened spending, forcing retailers to cut prices even though their own costs are soaring.

Earlier this month, the Centre for Economics and Business Research warned that a flood of retailers are expected to be forced into administration after a dismal Easter weekend’s trading.

Last month, clothing chain Select Retail, had to be rescued from administration while Mexx, the US-owned fashion retailer, announced it was to close its UK stores.

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