INTERSPORT defies the economic crisis, increases its worldwide retail sales by 4.2% to EURO 8.9 billion in 2008 and will continue to grow in 2009

The INTERSPORT Group, active in 36 countries, achieved retails sales of EURO 8.9 billion in 2008. This amounts to an increase of 4.2% over 2007 (EURO 8.54 billion). 1% can be attributed to organic growth and 3.2% to new stores. Retail sales of Exclusive Brands reached EURO 1.5 billion (a decrease of 3.2% over 2007); accounting for 17% of all retail sales.

Sales from the national Licensees
Sales from the national Licensees (stock sales, central settlement/bonus business) reached EURO 4.35 billion in 2008, an increase of 6.6% compared to 2007 (EURO 4.08 billion). Therefore, INTERSPORT Licensees were able to cover 97% of their affiliated retailers product needs.

Market Share of 21%
Several market research institutions assume that the value of the European sporting goods retail market decreased by approx. 1% in 2008 from EURO 37.5 billion (2007) to EURO 37 billion. The INTERSPORT Group was able to increase its market share in Europe from 19% to 21%. The Group is the clear market leader and maintains its position as the world’s leading sports retailer.

Retail sales development in 2008
In the first three quarters of 2008, the Group was able to increase retail sales in the product categories winter textile and accessories, but also in the INTERSPORT key areas of football, running, outdoor and fitness. The European Football Championship in Austria and Switzerland, where INTERSPORT had been the official sports shop of licence products, helped INTERSPORT to further develop its position as the world leader in football. Total retail sales in football increased by 14% from EUR 710 million (2006 with the World Cup) to EUR 810 million in 2008. Also due to the early and cold winter the Group was able to increase retail sales also in the last quarter 2008 compared to the previous year and this despite the economic and financial crisis.

A promising 2009
The first four months of 2009 brought further business growth due to the excellent winter conditions. Mainly in January, retail sales increases between 14% to 29% compared to January 2008 could be realised in the different countries. This positive trend continued also in April 2009 due to the nice and warm spring start in many countries. In the period January to April 2009 the Group realised 6.5% higher retail sales than in the same period of the previous year.

However, this positive tendency did not apply for all INTERSPORT countries. In Russia, Turkey, Hungary and Romania – countries suffering from a drastic devaluation of the national currency compared to the Euro – but also in Italy and Spain, the market environment has become very challenging. However, also in these markets the INTERSPORT development is considerably better than the development of the competition.
Overall still a positive development for Franz Julen, the CEO of IIC - INTERSPORT International Corp., who mentions the following main reasons: "Besides the favourable weather conditions we could see that the leisure/lifestyle segment is suffering more due to the economic crisis than the performance areas; where INTERSPORT with its strengths like wide range, competence, service and expert advice will be able to gain further market shares. Sport as a health factor is and remains a mega trend. Especially in difficult economic times people tend to have at least a satisfying leisure time, paying attention to a balanced living and understanding that they can achieve these goals with sports. Additionally we have invested in the last couple of months more than ever in Sponsorship and other marketing initiatives.”
In addition, the INTERSPORT business model with many affiliated retailers is at an advantage, mainly in these difficult times. They have a big entrepreneurial spirit, fighting daily for their own profit & loss account and working efficiently and flexibly.

Also for the sequel of 2009 INTERSPORT is optimistic. Franz Julen.

We trust that the sports retail business as in the past will be less affected by the economic crisis than many other businesses also in the retail sector and we expect continued growth even though it is understandable that the retailers are cautious in their orders for Fall/Winter 2009

Enhanced expansion with 175 new stores and for the first time in Asia and America
INTERSPORT will continue its expansion in existing and new markets. In 2008 175 new stores were opened and at the end of the year the INTERSPORT Group had 5'224 points of sale.
With the signing of a master franchise agreement with LG Fashion for the territory of South Korea and an exclusive agreement for the marketing of the INTERSPORT private labels in the USA by the Forzani Group Ltd., the IIC shareholder and Canadian INTERSPORT Licensee. For the first time INTERSPORT will reach Asia and the United States of America. Franz Julen: "INTERSPORT is now active in almost all European countries and Canada. For the coming years it is therefore our explicit goal to be represented in most of the growing Asian-Pacific markets and to reach a dominant market position."

New INTERSPORT store format
A newly developed store format, of which the pilot store was recently opened in Gothenburg, will further support INTERSPORT's expansion efforts. This new 1'000 m2 shop with a fresh and modern look meets the requirements of today’s consumers. In attractive category worlds the customer finds all elements of activities like running, football, outdoor, fitness or other sports and is encouraged to test out different products.

• back