Sports Direct expands into Europe; exclusive case study – InternetRetailing

Frasers Group is planning to open two Sports Direct stores in Luxembourg and one in Belgium by the end of the year, alongside nine Sports World stores in the Netherlands, as part of its international expansion plans.

A company profile in the RetailX Global Sports Goods 2024 report looks at how Sports Direct’s performance in 2023 has been a masterclass in understanding the modern retail landscape.

While some competitors have stumbled in an era of rising inflation and cost-of-living pressures, Sports Direct has thrived. This has a lot to do with its core strength – its enthused embrace of competitive pricing and deep discounts – resonating deeply with budget conscious consumers. 

The retailer offers a wider variety of sports and, perhaps more importantly for its bottom line, athleisurewear and sports fashion products at lower prices compared to many competitors, which attracts a broad customer base. 

The secret is that Sports Direct doesn’t just sell products, it sells variety. By acquiring established brands such as Dunlop and Slazenger, it not only expanded its product range but also leveraged existing brand recognition to build trust and value perception. It’s a win-win for both brand awareness and customer choice and this is seen in its rising revenues, which hit $6.5bn in 2023 with a profit of $2.9bn. 

The stores, too, play a key role. Gone are the days of bare-bones stores that were more like warehouses than shops. Sports Direct has upped the ante with the introduction of flagship stores boasting a fresher design, digital features – leaning towards perhaps a retail media play – and a more engaging shopping experience. Interactive displays, self-service checkouts and improved product categorisation all cater to a generation that expects a blend of physical and digital experiences. 

However, that isn’t to say that Sports Direct has neglected ecommerce. It has invested heavily in improving its online offering and has enhanced its platform. This includes offering a wider selection of products online, ensuring seamless ordering and providing varied delivery options. 

Strategic expansion, too, has played a key role in Sports Direct rising fortunes. Recognising the potential of the European market, it has become the number one sports retailer in Europe, focusing on Spain, Germany and France. It even has a presence in Malaysia. This expansion has allowed the retailer to tap into a wider customer base and further leverage economies of scale. 

All this has all helped Sports Direct create a brand image with reach beyond the previous expectations of many in the retail industry. While it has faced criticism in the past regarding working conditions and a ‘pile ‘em high, sell ‘em cheap’ brand image, recent efforts to improve labour practices are paying dividends. Brand image has been further enhanced by a focus on responsible practices that positions it favourably with a growing segment of customers who prioritise ethical sourcing and the fair treatment of workers.

This Sports Direct profile, authored by Paul Skeldon, is one of eight detailed studies and eight retailer snapshots. Each profile includes web traffic, share price over time, company revenue and company profit.

The wider report looks at why the global sports goods market is dominated by enormous, well-known brands, while discussing the wealth of localised players that attract a lot of sales and how they are utilising new channels to grow and reach their target customers.

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