Today’s Sports Direct update shows it continues to be a clear winner with sportswear shoppers but its success is more about fashion than sport.

In the past six months alone the number of consumers making a purchase in its stores has increased to 11.2 million – a boost of 14%.

In spite of events such as Euro 2012 and particularly the Olympics keeping sport front of mind last year, the amount spent on sports clothing in sports shops has been steadily declining over the past five years. So how has Sports Direct thrived? 

Of course the demise of one its largest competitors, JJB, will have improved its chances of success, and for a while now consumers have turned to Sports Direct for its value-for-money sportswear. But the store is also now the third largest menswear retailer in the country, something that can’t be achieved through sportswear sales alone. 

Increasingly we are seeing it become more of a generalist fashion retailer.  Its recent purchases of brands such as Firetrap have signified its move away from being a pure sportswear shop.  This has helped to broaden its appeal with shoppers and is a strategy that is now starting to pay dividends.

The strength of Sports Direct’s proposition is its clear value-for-money offer.  Two thirds of Sports Direct’s products are sold on discount – a strategy that has made complete sense in the past few years.  As budgets have tightened, value has become the most important factor when shoppers are buying clothes.  However, there are signs of change. 

Sales of full priced items in the total fashion market have returned to growth after a long period of decline, and we expect this trend to continue.  Shoppers are starting to demand good quality full price items that are perceived to provide long-term value.  

While of course there will always be shoppers that seek out the best deals, Sports Direct should be aware of this shift and ensure it has a full-price strategy for its fashion ranges in order to capitalise.

Ian Mitchell is strategic insight director at Kantar Worldpanel.