5th Feb 2008 07:01
Sports Direct International Plc05 February 2008 5th February 2008 Strategic Alliance Agreement in China Sports Direct International plc ("Sports Direct") today announces that it hassigned a strategic alliance agreement in China with ITAT Group Limited ("ITAT"),a multi-brand apparel retailer, with operations based in Shenzhen, China, tosupply merchandise under some of Sports Direct's portfolio of brands to thelarger ITAT's stores. ITAT is the largest network of multi-brand apparel retail chain stores in China.It operates a network of over 700 stores in 275 cities in China. Sports Direct and ITAT intend to offer Sports Direct brands in ITAT's Super Clubstores, utilising a store-in-store concept with an initial selling area ofaround 250 sqm per store. There are around 120 Super Club stores The sales areas will be staffed by ITAT employees. Sports Direct will supplygoods to ITAT on a consignment basis and will receive a proportion of therevenues generated. Sports Direct expects to make a total investment of up to£20m between now and April 2009, to fund store fit-out, working capital andrelated costs. The investment will be funded from existing facilities. It isexpected that there will be minimal earnings impact in the first full year ofoperation. Developing international distribution channels for the Sports Direct brands is akey part of the company's growth strategy. China is one of the world's largestconsumer markets, with a population of approximately 1.3 billion. Its populationcontinues to urbanize rapidly, and to enjoy fast growing average householddisposal income. Commenting on the alliance, Dave Forsey, Chief Executive Officer of SportsDirect, said: "We are delighted to be announcing our agreement to work with ITATin China. This alliance offers us an ideal opportunity to access ITAT's fastgrowing store network, and through it, to be able to offer our brands to theChinese consumer." For further information please contact: Sports Direct International plc Tel: 0870 333 9400 Dave Forsey, Chief Executive Bob Mellors, Group Finance Director Financial Dynamics Tel: 0207 831 3113 Jonathon Brill/Andrew Dowler/Ben Foster This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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