JD Sports has shut 24 of its UK stores within the last year, and its owner is now launching a huge closing down sale at the Hip Store. The sale applies to all sections, including menswear, womenswear, and footwear. Much-loved brands such as Nike and Adidas, which are stocked by the retailer, will be included in the discounts, with up to 90% off items.
Owner phases out brand since June
The owner of JD Sports has been phasing out the fashion brand since June due to financial uncertainty. The brand has over 4,000 stores worldwide and recently reported a drop in annual earnings. The store closures, which took place over the past year, come as the company aims to have “fewer, bigger, better” shops.
Concerns over Middle East tensions
The Mirror reports that the brand previously shared concerns over tensions in the Middle East which could mean higher costs and decreased customer interest. While JD said the Iran war has had no “direct exposure” on the business so far, with it only having a handful of franchised stores in the region, the company warned that “heightened uncertainty” could eventually “contribute to direct cost pressures”, Manchester Evening News reports.
JD said: “Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge.”
Tough consumer backdrop in the UK
In the UK, JD blamed the decline of organic sales on a "tough consumer backdrop". Since the end of the financial year, JD also said cold and wet weather had dampened sales. It said trading in April was "volatile", with a strong Easter performance followed by fewer visitors to shops.
