The board meeting of Sport 2000 International held in Munich earlier this month led to the election of William Monti, president of Sport 2000 France, as the international group’s chairman. He replaces the Dutchman Marius Rovers, who had to step down due to the fact that he will soon be leaving Euretco, the company running Sport 2000 in the Netherlands.
The Austrian Gerhard Schwab was re-elected as deputy chairman and Hans-Peter Rasmussen of Denmark was welcomed as new board member, while Andreas Rudolf of Sport 2000 Germany retained his seat. On the other hand, the Norwegian John Olsen stepped down due to his age.
Another significant decision made by the board was to approve the concept of a franchise system to be introduced for the Sport 2000 banner in a few years’ time. This is meant to establish more clear-cut rules for retailers to use the Sport 2000 formula and thereby tighten Sport 2000 International’s control over the banner. This comes after the introduction last year of a new logo, which has been adopted by 430 stores so far.
Munich was picked as a location for the meeting partly because it gave Sport 2000 Germany the opportunity to present its own franchise system. Licensees in several other European countries already have their own franchising rules, particularly in the Netherlands and France.
At the same meeting, the board also agreed to alter the structure of Sport 2000 International’s financing. So far each of the licensees had been paying the same fee, but this will be adjusted to take into account the gross domestic product of the territory covered by the licensee.
Separately, Sport 2000 International confirmed that it had appointed Kuruçayirli, a family-owned conglomerate, as its new partner in Turkey. The Ankara-based company, which has interests in sectors ranging from cars to media and fashion, already runs 13 mono-brand Nike stores and it formerly ran eight Intersport stores in and around Ankara. Sporting Gungör, Intersport’s new licensee in Turkey, took over four of these stores toward the end of last year and the remaining four stores were transferred this month. Intersport will continue to expand in the next weeks with two more openings in Izmir and Istanbul, to form a network of 26 own and franchised stores.
Metin Kuruçayirli, the company’s chairman, attended the Sport 2000 International meeting in Munich. The Turkish group intends to open three own Sport 2000 stores around Ankara by the end of the year and to build up a network of 40 stores in about five years, with a combination of own stores and franchises. All of them should have a surface of at least 500 square meters.
Sport 2000 had already been in Turkey for several years, most recently through a licensing agreement with Olgarlar, a sports retailer and distributor in Turkey, but its investments around the banner yielded unconvincing results, so that Kuruçayirli is starting from scratch. This comes as Turkey is drawing increasing interest from the sports business, with the entry of Décathlon in Ankara and Istanbul, as reported earlier.
Furthermore, it also emerged that Sport 2000 International had parted ways with Stojan Sopotnik, the Slovenian businessman who formerly held the license for the banner in Slovenia and Croatia, while wholesaling private labels in Serbia and Bosnia-Herzegovina. The Slovenian arm of Sopotnik’s retail business was taken over several years ago by Sports Direct International (SDI), the British sports retailer and wholesaler. Sopotnik still had two stores in Croatia, in Split and in Rijeka, but they were closed down. This has altogether ended the relationship between Sopotnik and Sport 2000 – leaving the retailer without a partner in Croatia.
The European network of retailers trading under the Sport 2000 banner or buying products from the group saw its sales increase by 1.29 percent last year (further details will be published in our upcoming annual retail chart). The increase would have been higher without the departure of Detall Sport in Spain and the unfavorable exchange rate of the British pound – the currency used by SDI, the buying partner of Sport 2000 in the U.K.