Intersport Retails Sales Set Record in 2013

Intersports, the world’s largest sporting goods retail banner with 5,400 stores in 44 countries, reported its retail sales increased  €100 million, or 1 percent, to a record €10.3 billion in 2013. Growth drivers were again the areas Running and Fitness, while the winter sports business and football sales declined.

In 2014 retail sales are expected to increase between 2 percent and 4 percent. Furthermore, the U.S. athletic footwear chain The Athlete's Foot, which was taken over in December 2012, realized retail sales of €270 million.

The gains came despite the absence of the Olympic Games and the European Championships, which always have a positive effect on the sale of sporting goods. In addition, the winter in Europe came late. Also the sale of the Sport Eybl & Sport Experts stores in Austria had a negative impact on sales. Excluding the results of Sport Eybl & Sport Experts, sales increased 4 percent in the previous year.

"All the more we are pleased that we still managed to increase our retail sales to a new record level," says Franz Julen, CEO of IIC - Intersport International Corporation (IIC).

"The positive result underlines that our strategy to focus clearly on the strong Intersport brand, consumer proximity and the entrepreneurial spirit of our retailers, is the right one.”

He noted that requirements for success are continuously increasing, "as today's consumer is better informed due to the digital world, more price-conscious and in terms of brand and shopping habits, less loyal than in the past."

Strongest growth in Europe - global expansion continues

In the past year, the highest growth came in the big European markets such as Germany, France and Great Britain as well as in most Eastern European countries. Intersport benefited primarily from global trends in the areas of "Fitness" and "Wellness".

In the current year Intersport will continue its expansion strategy in Asia and Oceania. Thus, in addition to the first three Intersport shops opened in 2013 in Southern China, eight more are to come. In Australia, 36 stores of Independent Sports will be renamed to Intersport by the end of June and with Morocco and Belarus, Intersport expanded its presence to a total of 44 countries.

At the same time, Intersport is also investing in the established markets. This year new Intersport stores were opened in the centres of London and Paris. "With this important move the Intersport brand does not only increase brand awareness, but also its image," Julen is convinced. At the end of 2013, Intersport had a total of more than 5'400 points of sales worldwide.

For the current year, despite the bad winter, thanks to the FIFA World Cup and continued growth in the Running, Fitness and Biking segments, Intersport expects sales growth of 2 percent to 4 percent. Intersport is the official event store of the World Football Association FIFA for the sale of official licensed products of the 2014 FIFA World Cup Brazil.

Integration of The Athlete's Foot completed

Mainly offering sports shoes for performance and lifestyle customers, the U.S.-based franchise retail chain The Athlete’s Foot was acquired in December 2012 and is now fully integrated into the Intersport Group. Since Nov. 1, 2013, Ingmar Kraak acts as the new CEO of The Athlete's Foot.

In 2013, the positioning of The Athlete's Foot was reconsidered.

A new store concept as well as a new procurement and expansion strategy were adopted and the business model adapted accordingly. As part of this realignment, the number of points of sales of The Athlete's Foot has been reduced from  421 to 392. The realignment of the retail chain and the reduction of the number of stores lead to a decline in sales of €10 million to €270 million in the past year. IIC expects to close the current year at The Athlete's Foot with a single-digit sales growth.

By press release