JJB Sports is to boost weak clothing sales by outsourcing the delivery of garments to its stores, improving availability.
In a multi-million pound deal starting in May, all sports and leisure products from the retailer's distribution centre in Wigan will be delivered by Lynx Parcel Express.
Lynx was first drafted in by the retailer 18 months ago to deliver footwear, which has led to a sales boost.
JJB finance director David Greenwood said the deal could boost clothing like-for-like sales by 1 or 2 per cent because shops will be replenished more frequently.
'Stock will get off the shelves sooner and it should generate sales quicker. In terms of overheads, it will cost more, but it will generate more gross profit,' he said.
Clothing, which accounts for 30 per cent of JJB's group turnover, suffered a 6 per cent drop in like-for-like sales to£306.8 million in the year to January 31.
Investec analyst Mark Charnock welcomed the change and said it would improve the look of JJB stores. 'They used to look like a stock room. They're trying to reduce stock levels more than anything else. The more frequent delivery of stock is a way of managing that and I would expect that to increase sales.'
- JJB has started selling maternity wear for the first time in an exclusive tie-up with Reebok.
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