SPORTS WORLD INTERNATIONAL

'Sports World International Ltd' are a British sports Retailer.
Founded in the late 1970's by former county squash coach Mike Ashley, they are now the UK's largest retailer of sports clothings and accesories.

Contents

History

Today

Brands

Other holdings

IPO Sale?

Marketing tactics

Brands

Retail

Clothing & Equipment

References

External links

History

After leaving school at 16, Ashley began trading on the high street, opening Sport and Ski shops in and around London in the 1980's - by 1990, there were three registered and recorded outlets. The chain expanded quickly funded by private money and profit from the stores, and by the late 1990s Ashley had rebranded the chain 'Sports Soccer' and opened over 100 stores across the United Kingdom. However, as a sole trader and not having to file accounts at Companies House, little was known about him even by rival retailers. Although sole-trader status preserved his privacy, Ashley was missing out on the limited-liability advantage offered by company status, and in 1999 incorporated the business^[1].

Today

Ashley's Hertfordshire based group 'Sports World International', with headquarters in Dunstable, Bedfordshire has over 300 UK stores including the chains Sports World, Lillywhites (acquired in 2002),gilesports and the Original Shoe Company. The group employs 8,000 people in the UK and at stores in Ireland, Belgium and Slovenia. In 2006 it over took JJB Sports as the UK's largest sports wear retailer^[2]. In mid-2006 it was also revealed that Ashley had held talks with John Hargreaves, founder of Matalan on both taking a 25% stake in the trouble retail business and installing mezzanine floors in larger Matalan stores, on which Sports World outlets could be operated.^[3].

Brands

In February 2003 he bought the Dunlop Slazenger brand for £40M, followed up by acquiring outdoor gear manufacturer Karrimor in March 2003^[4], Kangol for £10M^[5], boxing brand Lonsdale and tennis brand Donnay. Most of these brands are bought from distressed sellers, including after looking at a takeover^[6], Ashley took a £9 million stake and signed a lucrative long-term deal with troubled brand Umbro^[7].
The brands themselves are an increasingly important part of the business, and Ashley made £10m from selling the intellectual-property rights to the Slazenger Golf brand to arch-rival JJB in 2005.

Other holdings

Ashley has built a 29.4% stake in Blacks Leisure, the owner of Millets and Mambo^[8], and is thought to hold stakes in JJB Sports and 19% of JD Sports. Original Shoe Company, the Ayrshire-based chain of 50 shoe stores, has been acquired by Sports World for undisclosed terms ^[9]. ''"He likes to park his tanks on peoples' lawns,"'' said a banker ^[10].

IPO Sale?

In late November 2006, a number of business newspapers reported that Ashley was looking at an IPO of Sports World International. He has hired Merrill Lynch^[11], who have initially valued the group at up to £2.5bn ahead of a possible flotation on the London Stock Exchange^[10].

Marketing tactics

Often derided as a Tesco like "pile it high, sell it cheap" merchant after his transformation of the croquet-set loving Lillywhites, Ashley's chain has a more sophisticated approach. The chain will often use a Closing Down sales tactic on its multiple brand outlet's, and re-open in another location soon afterwards. Customers are also drawn into the store by almost margin-less promotions on perceived high-value brands like Nike trainers and Adidas tops, making money for Sports World when they also buy an own brand item marked up at a substantial margin^[4]
Ashley also likes to keep costs on his employees down, in march 2007 he closed his Dunstable warehouse and moved everything north to shirebrook where employees are paid less. This has caused some legal trouble as their delivery drivers are suing for unfail dismissal in that they were only told of their redundancy in march when the company know of plans i november to make them redundant and still told them their jobs were safe right up until march. Because of this many drivers bought new cars and remortgaged their houses thinking their jobs were safe and are now in financial trouble due to Ashleys unfair tactics.

Brands

Retail

★ Lillywhites

★ Original Shoe Company

★ SportsDirect.com - internet retail

★ Sports Soccer - former brand, some times used on older stores/closing down tactics

★ Sports World

Clothing & Equipment

★ Carlton - badminton

★ Dunlop sport - racket sports, golf, Travel equipment

★ Donnay - golf, clothing

★ Kangol

★ Karrimor - outdoor clothing

★ Lonsdale - boxing

★ Slazenger - golf, cricket

References

1. http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article703400.ece
2. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/06/cnswi06.xml
3. http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article722598.ece
4. http://www.timesonline.co.uk/richlist/person/0,,33699,00.html
5. http://www.mpdclick.com/mudpie/action/viewListItem?id=7228&listId=19
6. http://news.independent.co.uk/business/news/article304528.ece
7. http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article544722.ece
8. http://www.timesonline.co.uk/newspaper/0,,2769-2496087,00.html
9. http://news.independent.co.uk/business/analysis_and_features/article320840.ece
10. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/10/cnsports10.xml
11. http://www.imaginerecruitment.com/news/news.php
12. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/10/cnsports10.xml
13. http://www.timesonline.co.uk/richlist/person/0,,33699,00.html

External links

★ Official site