Russia’s leading sporting goods retailer, the Sportmaster Group, had no immediate comment on a report in the Danish press that it intends to develop the Sportmaster banner all over Europe, after turning around the Danish retail operation by the same name, which it bought at the end of last year, after acquiring the Polish stores of the French Go Sport group.
According to the Danish press, the Russian group has written down the goodwill of the Danish sporting goods chain, which booked a loss of 470 million Danish kroner (€63.2m-$74.6m) for the 2019 financial year.
The Danish chain, which operates 89 stores, had an operating profit of just over DKK 60 million (€8.1m-$9.5m) last year on relatively stable sales of a little over DKK 1 billion (€134.4m-$158.7m), compared with operating income of DKK 90 million in the prior year. The company had been making losses for several years after its acquisition in 2012 by an investment firm, Nordic Capital.
Meanwhile, the other major Danish sports retailer, Intersport Danmark, has reported a loss of nearly DKK 3.4 million (€0.46m-$0.54m) for the past year – a major improvement as compared to the loss of DKK 14.2 million that it had reported for 2018. The chain is now run by Peter Lau Larsen, the chief executive of Obi Sport, which took over its control in 2015. The move by Obi Sport, the group’s largest retail member with 29 stores, followed the migration of 21 Intersport stores to the rival Sport24 group.
Last year’s loss was largely attributed to a variety of measures intended to optimize Intersport’s deliveries, including a merger of warehousing capacities and the implementation of a new logistics system.
In the course of the year, the company opened three new Intersport stores and two others under the banner of The Athlete’s Foot. Two Intersport stores were closed down.