INTERSPORT increases its worldwide retail sales by 8.3% to EURO 8.37 billion in 2006

12.06.2007 | With its dominant presence in Europe and Canada, the INTERSPORT Group has increased its retail sales for the 38th year in a row, reaching EURO 8.37 billion in 2006, an increase of 8.3% on 2005. Despite the weather conditions and the ensuing less than favourable retail sales in January and February, 2007 looks to be a positive year as well.

The INTERSPORT Group, active in 32 countries with 4'906 stores (4'883 in 2005), achieved retails sales of EURO 8.37 billion. This amounts to an increase of 8.3% over 2005 (EURO 7.73 billion). Retail sales of Exclusive Brands reached EURO 1.51 billion; accounting for 18% of all retail sales (17% in 2005).

Sales of the national Licensees (stock sales, central settlement/bonus business) reached EURO 4.04 billion, an increase of 13% on 2005 (EURO 3.57 billion). Therefore INTERSPORT Licensees were able to cover 95% of their affiliated retailer product needs.

The value of the European sporting goods retail market is estimated at EURO 37 billion, an increase of 4% on 2005. The INTERSPORT Group increased its market share in Europe from 19.2% to 19.8%. INTERSPORT is and remains the clear market leader in Europe and maintains its position as the World’s Leading Sports Retailer.

In the first quarter 2006, retail sales were extremely positive thanks to good winter conditions in both Europe and Canada. Due to this, the retailers were able to reduce the majority of their winter stock, which had a positive effect on orders for Winter 2006/2007.

The Football World Cup directly influenced the second quarter 2006. With the right products, coupled with a strong marketing campaign and INTERSPORT’s core competence in Football, excellent sell-out figures were realised, with good margins for INTERSPORT retailers. This led to an increase of 30% in retail sales in the category football, reaching over EURO 700 million (EURO 530 Million in 2005).

In the third quarter 2006 and the first four weeks of the final quarter, retail sales were good. INTERSPORT was able to draw on its strengths - authority, expertise and service - specifically in the core categories running, walking, outdoor and fitness.

The winter, which failed to arrive in the final quarter of 2006, halted the euphoria and resulted in finishing 2006 on a very good, as opposed to an outstanding, note.

With the exception of Canada and the Scandinavian countries, retail sales suffered due to poor and in some cases non-existent winter weather conditions in January and February 2007, although poor sales in the winter product categories were compensated somewhat by good sales in all other product categories. However, March and April were excellent months in all countries due to the early arrival of spring.

In the last eight years, INTERSPORT has expanded into 15 new markets, and this strategy will be continued. In the United Arab Emirates the first INTERSPORT store (with a sales area of 1’300m²) opened on 17th May 2007, in the new shopping Mall on “Time Square”, Dubai. Within the next six months a second store will be opened in Dubai, and the first INTERSPORT store will be opened in Abu Dhabi.

Furthermore, the expansion strategy into the Asia/Pacific region has now been approved. The first step in expanding into China will be to have the first INTERSPORT stores up and running in China in time for the 2008 Summer Olympics in Beijing.

“A fantastic winter, the Football World Cup and the strong propensity of consumers to buy brought about very good retail sales in 2006. Despite the bad start, and thanks to the good economic conditions and consumer spirits, and to our aggressive expansion strategy, we are optimistic that 2007 will be a good year and expect further increased retail sales in the mid single-digit region,” predicts Franz Julen CEO, IIC – INTERSPORT International Corporation.