Investors in JJB Sports Plc (LON:JJB) have received an unexpected boost, as the company announced ahead of its Preliminary Results that it has seen an improvement in its trading [1] . With the stores set to be fully stocked by April 2010 in time for the World Cup [2] , the next update which is due on 27 May 2010 will be eagerly anticipated by the market who will be keen to find out more about JJB Sports future strategy and its prospects.
The Office for National Statistics, have also issued the retail sales figures for February 2010, which show a rise of 2.1% in sales volumes between January and February [3] . What we must consider however is that January trading this year was severely hit by the snow and the increase in the VAT rate. Compared with February 2009 sales were up 3.5%, which does indicate signs of renewed confidence in consumer spending, however we must take into account that the year on year comparators are based on an extreme period of uncertainty for consumers, who twelve months ago tightened their purse strings. Going forward the remainder of 2010 is likely to be tough for the retailers as fears over; job security, increased cost of living, increased taxation, reduced public spending and credit card debts are sure to damage confidence.
JJB have also announced that Colin Tranter, who was employed by Sir David Jones, has decided to retire as retail and product director of JJB Sports to spend more time with his wife and grandchildren. The Company’s new Chief Executive, Keith Jones will take responsibility for the function in the short term. [1]
Disclosure: The Author holds shares in JJB Sports Plc.
