Is the end nigh for JJB Sports?

JJB Sports has today reported widening losses and warned of critical trading periods ahead, most notably over Christmas, the January sales and next summer’s Olympics. Pre-tax losses for the six months to the end of July totalled £66.5m, compared with £24m last year.

Like-for-like sales at stores that have been open for more than a year also fell, by 17.7%, and the bad results have prompted a re-budgeting at the Wigan-based sports retailer. Its ongoing turnaround plans have already resulted in the closure of 41 of its stores, with another two to follow in the near future.

Keith Jones, JJB chief executive, comments: “Our results for the half year have been impacted by the closing of unprofitable stores and the sell-out of old and obsolete stock. Despite the consumer environment being extremely challenging, our re-sized store portfolio and other cost-saving initiatives have allowed us to manage the business and maintain tight financial controls."