Restructuring of JJB most likely take three to five years

28 May '11

5 min read

• Rightsizing the store portfolio through implementation of the CVA;
• Building on the success of the investment in the six stores transformed during 2010. We intend to continue to invest in the store portfolio through continued store and proposition development;
• Improving the basic retail disciplines in the Company, including stock selection, buying intake management, allocation, replenishment and clearance markdown management;
• Continuing to source new ranges including exclusive and differentiated products from all key suppliers and to develop exclusive branded products such as RUN 365 and Slazenger Golf;
• Promoting new product and service propositions as part of a co-ordinated marketing plan;
• Focusing on training by extending customer service and product knowledge training to all colleagues;
• Improving the multi-channel proposition including broadening the online range by introducing online exclusives, expanding the collect@store offer, developing a mobile version of the website and exploiting catalogue opportunities, all focused on providing customers with the easiest and most convenient ways to shop; and
• Aligning the Company's cost base and working capital investment to meet the needs of the business by exploiting opportunities for efficiencies in warehousing and distribution, stock management, store wages, sales management and the Retail Support Centre.

Progress to date and next steps

JJB's turnaround programme is now well and truly established. The Company has constructed five work streams that encompass all elements of the revised business plan and work continues on delivering measurable progress. Effective governance is also in place which feeds into both weekly reviews by the operating board and a monthly review with the Board. Achievements so far include:

• The closure of the first 18 CVA stores and planned the next round of store refits;
• Operationalising our plans to drive continuous improvement across the Company's basic retail disciplines, product sourcing, market planning, allocation and supply chain to forecast milestones;
• Rolling out training to all in-store colleagues on both extending customer service and improving product knowledge on track;
• Establishing a multi-channel programme to drive improvements in online capability, aligned to the in-store channel experience; and
• Reducing the Company's cost base, by working systematically through identified areas of opportunity, including the Company's Retail Support Centre in Wigan.

We have already begun to realise cost savings in respect of warehousing and distribution, store wages and central overhead costs.

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JJB Sports plc

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