Today's trading update from JD Sports illustrates yet again the power of bulk in the retail trade.
The Lancashire-headquartered company said this morning that it remains on track to break the £1 billion profit barrier for the first time in the current financial year despite a slowing of sales growth in May. Although US earnings veered off in June, revenues ran ahead of expectations in other markets.
With more than 3,400 stores across 38 countries and territories around the world, as well as its online business, JD Sports benefits from a big footprint in diverse geographies. The moderation in sales during May in all regions was anticipated, but the decline in sales growth to 8% would still be the stuff of dreams for many others in the sector.
The group also remains committed to its global growth strategy, having opened a net additional 32 JD stores in the first four months of the year. It is furthermore on track to surpass its target of opening 150 stores over the course of the 12-month period.
READ MORE: Fashion giant Primark owner AB Foods in summer sales boost
Meanwhile, the planned acquisition of France's Courir, which trades from more than 300 stores across six European countries, is set to underpin growth in areas where JD remains under-represented. The deal is expected to conclude later this year following the successful completion of the mandatory consultation process with the Courir works council.
That said, not even the biggest players are immune to wider economic pressures as consumers squeezed by surging global costs are being forced to cut back on discretionary spending. These concerns were reflected in the performance of JD's shares on the London market this morning as they sank to the bottom of the FTSE 100.
But brand power remains a powerful force as many trainers from the likes of Nike continue to sell out as soon as they go on sale, creating a buzz about the products which makes consumers want them even more. It was the same earlier this year when JD, the exclusive retail partner of the Scottish Football Association, sold out of the national side's 150th anniversary kit within hours of its official release.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here