UK outdoor ‘in a great place as an industry’, says JD Sports
18/08/2021
Lee Bagnall, CEO of JD Sports' Outdoor Division, has highlighted how the outdoor industry has benefitted from changing behaviours associated with pandemic as part of a talk with Andrew Denton, CEO of the UK’s Outdoor Industries Association.
The JD Sports Group is the largest player in the UK sector, owning Millets, Blacks and Go Outdoors, among others.
He said of the start of the pandemic: “When we closed stores, none of us knew what was going to happen. We had 360 containers on the water and nowhere for it to go. We hurriedly tried to cancel orders. Within a week it because apparent that online was going stratospheric and we would need the stock.”
He said that the group strategy is diversification, to spread the risks and rewards, and despite the challenging times (which included putting Go Outdoors into temporary administration), the group was now doing well. “The bike market has been incredible for everyone. Outdoor in general has benefitted dramatically, because lots of people have experienced the UK outdoor for the first time – and that experience sticks.”
He also said fishing, camping and hiking have seen sales increases. “Most of our suppliers have been amazing, but availability is low. It’s been such a challenge to get stock. We normally sell 300 or 400 hot tubs, but we’ve sold 5,000 this year. If you want to buy a camper van now, you’ll have to wait a year. We are in a great place as an industry. It's not just good for the UK economy but for our health.”
However, he said the group was shipping less to Europe because of Brexit, due to the increased duties.
The UK’s outdoor industry, like many sectors around the world, is also now suffering with port congestion and increased shipping costs.
Andrew Denton said he has heard of companies paying more than $20,000 for shipping that cost $2,000 a year ago. “This is possibly manageable if you are packing it full of high-margin, low-weight items like iPhones, impossible to ship sleeping bags or tents like that without passing on the costs,” he said. “Factory staffing is causing a nightmare in production - in Vietnam I hear that almost half the production capacity is restrained due to staff shortage.”