JD Sports ahead of game as the chavs keep spending
Leisurewear retailer JD Sports still hasn't noticed the recession.
The chain has bucked High Street trends for the past two years even as rivals such as JJB Sports flirted with bankruptcy.
Today it said sales in the eight weeks to the end of May improved 1.7% on a year ago.
That may not sound like much, but it's a performance few clothes retailers can match. It's also better than the 0.3% rise in sales achieved for the whole of last year.
JD is perhaps rudely associated with "chav-fashion". But chairman Peter Cowgill is happy with the connection, pointing out that teens without mortgages are likely to continue shopping even when economic conditions worsen.
He said the board is "encouraged by the progress made so far this year" but warns margins are coming under pressure. The decline in the value of the pound is a particular concern.
Last month JD Sports moved into France, paying £7 million for a company with a similar business model called Chausport.
Chausport has 78 small stores which mostly sell shoes, including those by Nike, Puma and Converse. It had sales of £45 million in 2007.
