JJB Sports chief executive Keith Jones is confident that its new business plan can revive the ailing sportswear retailer, despite like-for-likes slumping 13.5% from January 24 to March 13.
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Jones told Retail Week: “It’s comprehensive and will put us on the road to recovery. We have evidence from the transformed stores that this can work. We know what can happen with sufficient investment.”
The business plan, unveiled on Tuesday, involves raising a further £65m from existing and new shareholders, overhauling stores, and focusing on product and service. Jones claimed he has received interest from “multiple new parties” interested in becoming shareholders. The capital raising will only take place if its CVA is approved, which JJB will know on Tuesday.
JJB was bolstered on Wednesday when landlord Peel Holdings, which has six affected properties, said it would back the CVA.
As part of the business plan, JJB plans to invest £22.4m in revamping stores over the next two years.
The six stores that have already been revamped delivered sales 16% above its average from November 1 to March 13 and 30% up on money margin.
Most of the stores will undergo a basic refit this financial year to improve stock selection, buying, allocation, replenishment and clearance markdown management.
A further 41 stores will have a comprehensive refresh, adding new signage and focusing on footwear, and 50 stores will undergo
a full transformation, which includes new fixtures and fittings and adding a mezzanine level in some cases.
JJB will also invest in developing its own brands, which currently include running brand Run 365 and Slazenger Golf.
Jones said: “We’re conscious of new brand opportunities in footwear, apparel and equipment.”
JJB expects its like-for-likes to grow in the third quarter as its new business model takes shape. Jones said he expects the business to be in the black in three to five years.