MELBOURNE: Atomic Group, owner of sporting retail business Sportsco, is in the final stages of a retail acquisition deal, which should be finalised by the end of the year.
Sportsco general manager Andrew Carter said the takeover deal was currently undergoing due diligence and would have direct “synergy and leverage advantages” for further growth.He declined to disclose further details.
The news comes as Sportsco is ramping up its franchise operations, with a determined strategy to significantly build on its 70-store national network over the next few years. Key to the move is a return to Western Australia, with the sports retailer's first store in some years opening in Westfield Whitford City in Perth in December.
National franchise development manager Carly Mackay said South Australia is also proving a strong emerging market for the company, with its second store in the state recently opened in Glenelg. A third is due in January 2011. More locations in New South Wales and Queensland are also planned.
"We are definitely seeing people who want to build a business that has ongoing support from the franchisor and is backed with systems and processes, has strong brand partnerships and a unique buying structure," Mackay said.
The stores will feature a new contemporary interior design, which will see the company pitch to female customers and families rather than its former masculine, sports-oriented look. Clear category signage and brand statements are key. Red is still the dominant colour, along with some grey and white.
Part of its bid to appeal to women is securing the exclusive distribution and licence rights in Australia and New Zealand for Italian fitness apparel brand Freddy. Pitched at 22 to 40-year- old women, the label comprises two seasonal collections per year. Prices range from $25 to $80.
Carter said the business will be implementing a three-stage e-commerce strategy over the next 12 months, starting with a new web system later this year. When complete, it will see online sales directed to the customer’s local franchise store.
Brands stocked by Sportsco include Asics, Nike, Saucony and New Balance. It also produces its own private label, noexss, and foot-fit analysis system, 3iD.
Melinda Oliver