More Troubles for Go Sport Group

SASSENAGE, France – The troubled retail chain Go Sport Group from France saw its profits deteriorate further during the fist six months of 2008. Declining sales at the group’s Go Sport shop formula where also bikes and bike products are sold caused the drop in profits. The operating loss over the first half year stood at € 14.5 million, compared with € 7.9 million at the same time last year.

According to a report in the trade publication for the sporting goods sector, Sporting Goods Intelligence (SGI), the drop in sales at Go Sport reflects the depressed consumer climate in France as well as: ‘ongoing issues for the generalist Go Sport banner in the country.’

Sales Rise in Poland

Sales at the Go Sport Group dropped 2.2% to € 348.3 million in the first half of 2008. However, the sales drop at the Go Sport shops stood at a big 7.4% (on a comparable basis). However, a 20.9% sales rise (in euros) at the Go Sport shops in Poland partly made up for the overall sales drop. Results at the Go Sport Group profited from strong sales at its footwear chain Courir.  

Go Sport suffered, according to SGI: “From a botched switch to SAP in February, which caused major disruptions in deliveries and sometimes left stores without most-wanted products. Go Sport is striving to compensate these issues by increasing sales of private label items. They already made up about 31% of Go Sport’s turnover and 47% of its sales in volume at the end of the period, helped by consumer appetite for relatively cheap products.”

Currently the sporting goods retail chain has put new store openings for the Go Sport chain in France on hold while it also will continue to close down loss-making stores and revamp others. Go Sport runs now 125 stores in France.