Ashley plots masterplan to put Lillywhites back on top

Sports Direct boss Mike Ashley is to restore flagship sports store Lillywhites to its former glory with a massive refurbishment and renewed focus on professional sports products.

Ashley, who took control of world-famous Lillywhites in 2002, applied his strategy of bargain basement price-cutting at the Piccadilly landmark store – once the premier specialist sports shop in the country – to widespread criticism.

The Lillywhites makeover is understood to include the installation of concessions, more technical equipment and provision of expert advice.

Running machines and heart monitors will feature on the fifth floor to create a dedicated department for running. A Field & Trek concession opened this month on a mezzanine off the third floor and it is understood that Ashley will create more concession areas for brands that he owns or has stakes in, or those brands he has partnerships with, such as Adidas and Nike.

The shift to upmarket is likely to partially appease City criticism and the concerns of suppliers, who have been worried about how the store environment affects their brand profile.

Pali International analyst Nick Bubb said: “It is disgraceful how Lillywhites has been dragged so far downmarket. While the price-cutting appeals to a certain customer, Sports Direct’s recent profit warning shows the bargain-basement tactic is short term.”

He added that an attempt to enhance Lillywhites would be a step in the right direction and would give Ashley a flagship store that would please brands such as Nike and Adidas.

Lillywhites’ revamp is also thought to be in preparation for the introduction of the fascia in the Middle East and South Africa. Ashley will roll out Lillywhites under an agreement with Middle Eastern-based company Retail Corp. Industry observers have said a more upmarket flagship would carry more clout as Ashley seeks to create a global sports empire.

Ashley this week moved to wrest greater control of Sports Direct, fuelling speculation that he would attempt to take the company private just 10 months after it floated. Sports Direct’s shares have tumbled on the back of its difficult relationship with the City and three profit warnings, the latest coming last week after England’s football defeat.