Prices may have to be cut
JJB Sports suffered first-half losses and revealed it may have to be more aggressive on price to tough out the rest of the year.

Interim results at the UK's largest sports retailer showed a like-for-like revenue decline of 8.8 per cent for the 26 weeks to July 31.

Trading continues to be difficult, with sales for the 10 weeks to October 9 down by 3.1 per cent, compared with the 26 weeks to October 2 last year.

Non-executive chairman Roger Lane-Smith said: 'It is disappointing to present results which sow a lower profit than that achieved last year. However, JJB cannot escape the effects of what is clearly an economic downturn in the retail industry.'

A JJB statement added: 'The board doubts whether JJB will see any improvement in its retail environment during the second half and believes that to remain competitive, it may well have to lead a more aggressive pricing policy.'

However, Numis retail analyst Steve Davies said: 'Although not quite as bad as we had feared (the group was helped out by a£4 million reduction in its depreciation charge and a£2 million profit from store disposals), this is still a poor result and reflects the intense competition in the sports market at present.'

JJB could be helped by the collapse of All:sports into administration last month. JJB plans to open a further 12 superstores in the second half, seven of which will be combined health club/superstores.

The retailer announced today that Roger Best has joined as a non-executive director with immediate effect. He was formerly non-executive director and then executive chairman of John David Group.

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