While the big sport retailers are certainly feeling the strain of consumers closing their purses, it is not quite as bad as in the fashion industry. The unaudited results for the first half of the 2017 financial year reported by Holdsport, TFG (Fosching Group) and MRP (Mr Price) earlier this month at least showed some growth – although not as spectacular as in the preceding decade.
Holdsport sales grew 6.5% to R807.2-m during the period, while the sports divisions of major retailers like TFG and MRP performed better than the fashion apparel sectors of these retail chains.
TFG Sport (Totalsports, DueSouth and Sportscene) reported a turnover of R2.1-bn for the period, which is 21% up from the same period last year, compared to the whole TFG sales growth of 16.9% to R11.4-bn. Sport contributed 18.5% to revenues. Like-for-like growth is not reported for the sport division, which opened 76 new stores since September 2015. It is therefore not possible to gage the effect of the DueSouth decision to reduce equipment and concentrate on outdoor clothing and footwear.
TFG Sport now operates 637 stores – 309 Totalsport, 266 Sportscene and 62 DueSouth. Of these, 48 are across border stores – 23 Totalsports, 20 Sportscene and 5 DueSouth.
MRP Sport sales grew 13.3% to R634.5-m, but like-for-like sales only grew 2.1%. Following the exclusion of most other brands, it is not surprising that their own Maxed brand grew comp sales 13%. Footwear sales grew 24.9%, with Maxed growing 33%, but growth in equipment and outdoor departments dropped, the retailer reports (percentages not included). Retail selling price inflation was 16.9% up and trading density grew 8.1%.
Sportsmans Warehouse was the main contributor to Holdsport’s retail sales growth with an increase of 7.3% to R588.9-m. Outdoor Warehouse sales grew 1%. Like-for-like sales in Sportsman’s Warehouse, however, grew 5.4% and decreased 2.9% in Outdoor Warehouse. Price inflation was 8.6%.
The Performance Brands wholesale division benefitted from the acquisition of Second Skins in June and grew external sales 31% to R32-m, but internal sales grew 3.8%. They added the outdoor T-shirt brand African Nature in October.
Sportsmans Warehouse opened one new store in the Mall of Africa and expanded the Pavillion store during the period – they now operate 38 – and Outdoor Warehouse expanded the Somerset West store and relocated the Nelspruit store – they now have 22 stores. In November Outdoor Warehouse opens a new store in George and Sportsmans Warehouse will open in Menlyn Park in December. The weighted trading space increased by 2.3%.