Given how quick JJB Sports was to blame its poor sales figures on the England football team's failure to qualify for this summer's Euro 2008 tournament, it would come as little surprise if it now jumped on the Team GB bandwagon in the hope that some of Britain's recent Olympic success rubs off on it.
The retailer is definitely in need of some kind of boost - sales at its 409 stores fell by 2% in the 12 weeks to July, which followed the decision in April to cut 800 jobs after a 30% fall in profits.
The problem is that JJB Sports would struggle to describe itself as a 'proper' sports shop - certainly, any aspiring Olympians would be hard-pressed to get themselves kitted out there; rather it
is seen as selling cheap sports-related leisurewear to customers that are more likely to be found hanging around shopping centres than leisure centres.
Pressure has come from all quarters. JJB Sports became the UK's leading sports retailer following its acquisition of rival firm Sports Division in 1998, and benefited as sportswear became a fashion trend. But sports casual is now seen as 'chavvy', and the market has been cannibalised by the supermarkets and discount retailers. At the other end of the sector, brands such as Nike and Adidas have built their own retail outlets, creating added competition for general sports retailers.
So where now? We asked Rupert Pratt, managing partner of sponsorship agency Generate, and Abba Newbery, triathlete and managing partner of Universal McCann, for their views.
Diagnosis Two industry experts on how JJB can get back on track
Rupert Pratt managing partner, Generate
JJB is renowned as a pile-them-high sports leisure discount store. Its customers are more likely to go there to get kitted out for Saturday-night partying than to participate in a sports event.
Its heritage is in football, which perfectly appeals to its mass-market audience. But just like the national
game, JJB has been underperforming for some time, with sales down 2%, which isn't surprising as its 'sports casual' target audience is the group most likely to have been affected by the credit crunch.
JJB also sponsors Premier League side Wigan Athletic. However, being so heavily reliant on football is likely to affect sales - performance on the pitch equals shirt sales off it.
JJB is missing a key opportunity to target a more selective audience. Where can you get some decent advice and sports apparel these days without going to a specialist?
Founded by Dave Whelan, the business is entering a new era - there's the arrival of Chris Ronnie as chief executive, an updated logo and a revamped store format. This overhaul must be supported across the business.
Remedy
- The football sponsorship strategy seems confused. Use it to reinvigorate the business, and to educate, inspire and motivate staff.
- Reposition the brand - embrace other sports/activities.
- Build some genuine credibility at the top end of the market and the masses will follow.
- Support this new credibility with an integrated campaign - look at what Nike and Adidas do.
Abba Newbery managing partner, Universal McCann
As a sports obsessive, I should be the perfect target for JJB Sports - my sport of choice, triathlon, is not just the fastest-growing in the UK, but also one of the most equipment-hungry, ensuring that I spend a fortune on sports goods.
JJB, though is a long way down on my list of favourite stores. The giant warehouses, crammed with leisure clothing rather than sports kit, brands such as Umbro, and a seeming obsession with football all turn me away.
But sport has to be the business to be in. Following our most successful Olympics ever, in Beijing, all eyes are now on London 2012, heralding a national push to engage an additional 2m people in sporting activities. The social benefits of sports investment are beginning to overshadow our sports personalities. With 250,000 kids on a waiting list to join gymnastics clubs, eight gold medals in cycling and the girls outperforming the boys in China, new heroes have emerged to inspire the nation, beyond the overpaid world of the Premier League.
Remedy
- Move upmarket. It's not all about value. Sport will increasingly become a status symbol, and people will continue to spend on the things they love the most.
- Learn from the success of online. Offer people a more tactile and rewarding experience than they get on the web.
- Focus on the sports that we play every day. Supporting and encouraging ordinary people's sporting habits is a great way to grow sales.
- Get involved with grass-roots initiatives in sports that need the money. Create communities and products that encourage personal goals and record achievements.
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