Sports Direct International Plc
05 February 2008
5th February 2008
Strategic Alliance Agreement in China
Sports Direct International plc ("Sports Direct") today announces that it has
signed a strategic alliance agreement in China with ITAT Group Limited ("ITAT"),
a multi-brand apparel retailer, with operations based in Shenzhen, China, to
supply merchandise under some of Sports Direct's portfolio of brands to the
larger ITAT's stores.
ITAT is the largest network of multi-brand apparel retail chain stores in China.
It operates a network of over 700 stores in 275 cities in China.
Sports Direct and ITAT intend to offer Sports Direct brands in ITAT's Super Club
stores, utilising a store-in-store concept with an initial selling area of
around 250 sqm per store. There are around 120 Super Club stores
The sales areas will be staffed by ITAT employees. Sports Direct will supply
goods to ITAT on a consignment basis and will receive a proportion of the
revenues generated. Sports Direct expects to make a total investment of up to
£20m between now and April 2009, to fund store fit-out, working capital and
related costs. The investment will be funded from existing facilities. It is
expected that there will be minimal earnings impact in the first full year of
operation.
Developing international distribution channels for the Sports Direct brands is a
key part of the company's growth strategy. China is one of the world's largest
consumer markets, with a population of approximately 1.3 billion. Its population
continues to urbanize rapidly, and to enjoy fast growing average household
disposal income.
Commenting on the alliance, Dave Forsey, Chief Executive Officer of Sports
Direct, said: "We are delighted to be announcing our agreement to work with ITAT
in China. This alliance offers us an ideal opportunity to access ITAT's fast
growing store network, and through it, to be able to offer our brands to the
Chinese consumer."
For further information please contact:
Sports Direct International plc Tel: 0870 333 9400
Dave Forsey, Chief Executive
Bob Mellors, Group Finance Director
Financial Dynamics Tel: 0207 831 3113
Jonathon Brill/Andrew Dowler/Ben Foster
This information is provided by RNS
The company news service from the London Stock Exchange
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