Major high street brand shuts 13 stores across UK after drop in sales

JD Sportshas shut 13 stores over the past six months as UK sales tumbled and customers grapple with "strained" finances.

The sportswear retailer operates 412 outlets across Britain, though it revealed earlier this year plans to axe 50 branches globally. The chain disclosed weaker like-for-like sales and profits during the previous half-year in Wednesday's (September 24) trading update.

It acknowledged the decline was partially attributed to falling UK sales, with store closures denting the company's performance. Chief executive Regis Schultz warned investors he remains "cautious" about second-half trading prospects.

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JD Sports revealed group like-for-like sales fell 2.5% to £5.94billion across the 26 weeks ending August 2. Organic sales climbed 2.7% whilst total sales surged 18% following acquisitions of the Hibbert and Courir brands.

The retailer confirmed like-for-like sales plummeted 3.8% in its crucial North American division and fell 3.3% domestically, reports the Express.

Mr Schultz said: "We delivered organic sales growth of 2.7% in H1, in what remains a tough trading environment. This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers."

"In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD, and we are controlling our costs and cash well."

He continued: "Whilst we remain cautious on the trading environment for the second half, we expect limited impact from US tariffs this financial year, and our full year profit before tax and adjusting items to be in line with current market expectations."

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JD Sports revealed that weaker UK trading was "affected by tough prior-year comparatives due to the Euro 2024 football tournament". The retailer said this particularly hit replica football shirt sales during the period.

The company also disclosed that adjusted pre-tax profits tumbled by 13.5% to £351million over the half-year. The group stated this aligns with guidance and means it remains on course to achieve its annual targets.

Its UK operation witnessed operating profits before adjusting items and lease interest decline 6.2% due to rising labour costs, property expenses and investments in technology and cyber resilience. JD Sports operates a global network of 4,872 stores across 36 countries.

In June, the chain launched a new flagship outlet at Manchester's Trafford Centre. Russ Mould, Investment Director at AJ Bell, said markets are grappling with whether sluggish demand at JD Sports represents a cyclical or structural trend.

He added: "A weak economic backdrop is not helpful and while the youthful demographic targeted by the sportswear chain may not be weighed down by costs like servicing a mortgage or nursery fees, they still have less money in their pockets."