Winners and Losers
Posted by Morgan on 6th Sep 2012
Followers of the Ellandi blog (there are a few of you) will know that we have said a number of times that the tough retail environment is exposing those with the weakest businesses rather than crippling all retailers in the same way.
There is no better illustrtaion that the relative performance of Sports Direct and JJB. It may be hard to love, Newcastle FC owner, Mike Ashley but you can't dispute that he knows how to run his business.
Stella results for Sports Direct over the 'Summer of Sport' and the share price is flying (finally). Across the high street JJB is up for sale and effectively bust. Why - have you been to JJB recently? Crap product range, no customer service and no competive advantage at all. It's like a bad charity shop. If they survive (big IF) then no doubt they will slash the number of stores, reduce the rent bill and cost base but their issue stems from failing to offer customers any form of shopping experience.
Sport is all about winners and loosers. So is selling sports wear.