• Corporate Information
• Investor Relations

Strategy

The Group is the leading operator in the UK Outdoor market. In early 2008 the company embarked on a turnaround programme under a new management team. Blacks Leisure had entered the recession as a loss-making business and so radical action was required to restore the company under tough trading conditions. Over the last 18 months the company has closed a head office and warehouse, removed £8 million of cost, exited much of the unprofitable Boardwear business, developed and proven two new successful store concepts and undertaken a CVA which has removed the impact of 101 loss-making leases. These actions now provide us with the platform to progress the turnaround and restore the company to profitability in the medium term.

We've already launched five of our new concept stores- Blacks in High Street Kensington, Blacks in Holborn, Blacks in Newcastle, Millets in Haverford West and Millets in Newcastle.  At the time of our interim report these stores were trading +10% better than the rest of the chain.  The new stores provide a more modern and visually appealing environment in which to purchase outdoor products.  Product density has been reduced to allow the products to be better displayed and there has been a greater emphasis on key brands through the use of "brand pods" within the store.  These are moveable allowing us to relay the stores overnight to reflect seasonal changes and the performance of individual brands.

The outdoor market has moved on considerably in the last ten years.  Brands such as The North Face and Berghaus have made these products more of an everyday item of clothing and a large number of consumers now appreciate the benefits of fully waterproof and windproof products with a high technical specification.  In addition there is an increasing lifestyle element to our business as people are no longer prepared to trade techincal excellence for fit and fashionability.  The growth of lifestyle brands such as our own ALS is an indication of this trend.  There is a quiet revolution taking place in the outdoor market and as the largest player in this sector by some margin we are at the forefront of this.