Sports Direct International (SDI) is continuing to invest in various sports categories through acquisitions as well as partnerships. The leading British sports retailer has just bought a unspecified stake in Direct Golf UK, a leading British golf retailer, which should help to fund its expansion into Europe. John Andrew, a golf professional who established and owns Direct Golf UK, remains its majority shareholder.
Set up in 1991, Direct Golf UK has turned into a major account for golf suppliers in the U.K., with 20 stores and a large share of the country's online golf sales. Sports Direct already acquired a stake in European Golf, another British golf specialist retailer, five years ago. The buy was part of SDI's strategy to team up with specialist retailers in order to build up its offering for various sports categories in its own stores, often through dedicated sales areas.
Direct Golf UK, which reported a turnover of about £23.9 million (€30.19m-$40.48m) last year, aims to become Europe's leading golf retailer. Andrew said that the tie-up with Sports Direct would enable it to implement its expansion plans, such as the start of a golf superstore concept and acquisitions to accelerate growth. Direct Golf UK, which employs some 150 people, hopes to open another 20 shops in the U.K. over the next three years, and expand into Europe later.
Sports Direct is expected to provide support in funding as well as supply chain, logistics, marketing and online capability. Direct Golf UK will continue to be managed by Andrew from Huddersfield, where the company was established. Andrew said that the tie-up with Sports Direct would also help it to increase participation in the game in Britain and the rest of Europe.
Just a few days earlier, it was confirmed that Sports Direct has started to run its own fitness centers. Sports Direct acquired some outlets of the LA Fitness chain of fitness clubs and branded them as Sports Direct Fitness. LA Fitness was said to have put 33 of its 80 clubs up for sale as part of a company voluntary agreement with landlords in March. SDI owns several brands that are relevant to the fitness market, such as Lonsdale, Slazenger and USA Pro.
Sports Direct has opened a dedicated website, sportsdirectfitness.com, with offers of membership for 13 gyms. The monthly membership is priced at just £25 (€31.58-$42.34), with an initial admission fee of £20 (€25.26-$33.88). It mentions numerous classes as well as incentives related to fitness products. British newspapers reported that the retailer intends to start more fitness centers, above new stores and in standalone locations.
JD Sports Fashion, the major competitor for Sports Direct in the U.K., moved into the fitness market earlier this year by opening a fitness center in Hull. DW Sports is another British company that combines sporting goods retailing with fitness clubs, with about 60 of them around the country. It was established in 2009 when David Whelan, the founder of JJB Sports, bought 50 fitness centers from the failed sports retailer.
