Sports Direct is gearing up for a battle with new JJB Sports investor Dick’s Sporting Goods by cutting prices.
Sports Direct said the deal is “great news” for its customers and is planning to make further price reductions across the board.
The price cuts will be funded by “operating efficiencies” and enacted by a workforce that is “fired-up by the outstanding employee share bonus scheme”, the retailer claimed.
Sports Direct chief executive Dave Forsey said: “Dick’s is well-known in America for selling guns. We just want to let them know that over here, they will fight by our rules.
“We have three weapons of our own, and the customer knows they are unbeatable: price, price and price.
“Incidentally, we are interested to see Dick’s saying that JJB is a strong company. Our team, just like Newcastle United FC at the Sports Direct Arena, is flying high and ready for tougher opposition. Bring it on.”
JJB Sports today received a £30m injection from investors including Dick’s Sporting Goods as it posts a full year pre-tax loss of £101.1m.
US sportswear giant Dick’s, which has over 500 stores in the US, is to invest £20m in new shares and convertible loan notes, and has the right to invest a further £20m in loan notes.