Budget Sport is the low-cost store concept of Intersport, offering the lowest possible prices on branded products and private-label items with a minimum of store personnel. Successfully launched four years ago and subsequently fine-tuned by Intersport's Finnish licensee, Kesko (see following story), it has now been adopted by its Swiss licensee, Intersport PSC Holding. At least two more unnamed national Intersport organizations are expected to announce their first Budget Sport stores in the coming months.
Intersport PSC is starting up its first three Budget Sport stores in Biel, Winterthur and Emmenbrücke on March 31, each measuring about 1,000 square meters. Paying royalties to Intersport International, which owns the brand name, Intersport PSC will directly own and manage these three stores. It has a tentative plan to have 10 of them in place throughout Switzerland within three to five years' time.
To lure customers and their families to the new stores, the company is offering a discount of 10 Swiss francs (€7.70-$10.90) on any purchase worth 50 Swiss francs (€38.70-$54.60) or more at their locations. In addition to several attractions for children, it is also giving away free sausages and drinks through Saturday, April 2.
In addition to branded products, including the SMUs negotiated by Intersport International, Budget Sport stores feature Intersport's private-label products. They carry special promotions on certain items at various times of the year. The Budget Sport concept is completely separate from Intersport PSC's previously launched factory outlet concept, where surplus merchandise accumulated by its retailers from previous seasons is offered to the general public.
Interestingly, Intersport is launching Budget Sport in a country where Décathlon has no presence and where there are hardly any discounters of sporting goods. Owned by a British investor, Intersport PSC is also a shareholder of Intersport International. It is the major sporting goods retail organization in Switzerland, with a total of 254 affiliated retailers that operate 380 stores, most of them franchised. They have an annual turnover of around CHF 550 million (€425.9m-$601.1m), giving them an estimated market share of 26 percent.
