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SGB UK February
In what is probably one of the biggest news stories for the sports goods business to date, Mike Ashley announced plans to list his Sports World empire on the London Stock Exchange, which is expected to net him a cool £600m.
As SGB UK went to press, word was that heavyweight City firms Merrill Lynch, Citigroup and CreditSuise were to advise him on the float, in which he was predicted to sell at least 30% of his sports retailer. Analysts expect Sports World to secure a valuation of around £2bn. City sources expect Mr Ashley to remain Sports World's majority shareholder, taking an executive role as deputy chairman.
Ashley began on the high street in the 1980s, opening sports and ski shops in and around London with private money. In the 1990s he re-branded the chain Sports Soccer and grew it rapidly. He was registered as a "sole trader" however, until as late as 2000 when the business was first incorporated.
The tycoon is somewhat of an enigma to the media, speaking to the press for the first time in December when he confirmed reports that a listing of Sports World was likely. He said his ambition was to turn his company into the most profitable sports retailer in the world and his approach of piling it high and selling it cheap has without doubt been profitable. That said, what struggling independents need to remember in the face of such stiff competition is that they can provide a much more personal, sport focused service.
Also this month, consumer group Which? announced it would take legal action against JJB Sports for the sale of replica football shirts during the alleged price fixing of 2000 – 2001.
Back in 2003 of course, JJB was fined £6.7m by the office of fair-trading (OFT) over price fixing. The OFT’s case against JJB and nine other businesses followed one of the biggest investigations of its type in the UK. No doubt each of the businesses involved hoped this rather damaging spotlight on their activities would diminish, but this latest row has only turned it up a watt or two.
On a lighter note, spring is the air! As the evenings get longer, partaking some stress busting sport after a hard day at work is just the ticket. Be it a game of badminton or a run in the park, just being able to get out there and do it is reason enough.
Indeed, the ‘Just do it’ philosophy is one we live by at SGB UK. But to find out more about the brand that coined the now famous phrase, turn to page 8. In an exclusive for the trade Nike told me - it’s all about the athlete’s attitude.
So get your trainers on and get out there!
Becci
