Adidas and Nike fuel sports retail rivalry

UK sportswear retailers JJB Sports and JD Sports could benefit from the introduction of premium lines by Nike and Adidas, at the expense of discount rival Sports World.

Both brands are concerned that their products’ image is being damaged by poor presentation in cheap stores and intend to hold back the premium ranges from the discounters, in order to protect their brand image.

Nike and Adidas will ask retailers to comply with new rules on customer service and display quality, which will come into force in January.

Adidas UK managing director Gil Steyaert told The Financial Times: ‘It’s an industry that has been flat over the past four years.

‘We’re asking retailers to step up in terms of brand presentation and product presentation. They [Sports World] will look at [whether] they want to evolve their brand presentation to serve a higher part of the market.’

JJB chief executive Tom Knight said: ‘Adidas and Nike have new distribution policies that have been in place for some weeks, but will come into effect from next year. There are certain presentational [requirements] in their policies… that would put them [Sports World] in a different category to us.’

However, both Nike and Adidas are expected to continue to supply Sports World with more mainstream product.