The members of Intres, the Dutch buying group that runs the Intersport banner in the Netherlands, have approved its merger with Euretco, the licensee of Sport 2000 in the country, at an assembly held to discuss the deal earlier this month. Sport Partner reports that the works councils of both buying groups have issued a recommendation in favor of the tie-up as well, which leaves only the approval of the Dutch competition authority, the NMa, for the deal to go ahead.
As previously reported, the managers of the two buying groups have already agreed that, should the NMa approve the deal, the joint operation would give up the Sport 2000 banner and focus on Intersport instead, because it enjoys a larger turnover and brand recognition in the Netherlands. The prospective partners were not allowed to retain both banners, due to objections from the NMa as well as the international license-holders of Intersport and Sport 2000. The two buying groups together handle three other sports retail formats, as well as central settlements for scores of independent retailers.
Separately, the Euretco buying group, which includes activities beyond the sports market, mostly in fashion and interior decoration, reported that its sales declined by 2 percent to an unspecified level but its operating profit jumped by 31 percent to €8.7 million last year. The company pointed to marketing investments and improvements in the management of Runners World among the factors behind the increase in profitability – along with substantial cost-cutting.
