Task 3, Question 3

Background to Sports Direct

Sports direct is a very large company that sells sporting related goods. The group has over 470 stores across the UK and also has a website that is used in conjuncture with these stores. These two channels of business would be the company’s two main business channels and both bring in a large amount of capital for them. In 2016 the company brought in a staggering 210.7 million pounds in underlying profit. The businesses online services attributed to 16.5% of their retail sales in 2015 but this can be seen as the raw number of sales online and it can be assumed they will have more business from people viewing things online and then purchasing them in store. Taking this into account an average of 1/5 of the company’s sales could be attributed to the website and the rest to physical advertisement and actual stores. From this we can see that the business relies mainly on people coming into store and purchasing products and from other physical advertisement such as billboards and TV advertisements. However the business does produce a large amount of capital from online sales also and without both may not be as big a success as it is now.

 

Ecommerce News. 2017. Sports Direct see online sales hit €551 million thanks to click and collect. [ONLINE] Available at: https://ecommercenews.eu/sports-direct-see-online-sales-hit-e551-million-thanks-to-click-and-collect/. [Accessed 06 April 2017].

 

sportsdirectplc. 2016. 2016-annual-report-accounts.pdf. [ONLINE] Available at: http://www.sportsdirectplc.com/~/media/Files/S/Sports-Direct/annual-report/2016-annual-report-accounts.pdf. [Accessed 6 April 2017].

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