But in recent years its chokehold on the industry seems to be slowing.

The American sportswear giant is in the midst of its worst slump in a decade. Earlier this year it unveiled plans to cut 1,600 roles as it looks to make £1.6bn in cost savings over the next three years on the back of softer sales.

When making the announcement to staff about job cuts, Nike chief executive John Donahoe – who replaced its much-lauded boss Mark Parker in 2022 – admitted: ”We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

The gravity of the situation was laid bare last week when Nike slashed its 2025 forecast after reporting weaker-than-expected fourth quarter sales. The news led to its shares plunging 20%, making it the biggest one-day percentage drop in its stock’s history.

The brand has faced increased competition from new players and old, and some have pointed to a lack of innovation as it has struggled to meet shifting consumer preferences.

As the Paris Olympics approaches and the world gets fully immersed into a summer of sports, Nike is determined to hark back to its innovative roots and affirm its position as the undisputed leader in sportswear.

But what has put Nike in this vulnerable position in the first place, and what steps does it need to take to return to peak performance?

Nike’s recent stumble

Compared to its historical dominance in the industry, Nike’s recent performance has shown signs of weakness as new players such as On, Hoka and Lululemon have gained traction.

Retail consultant and former Nike exec Peter Harewood tells Retail Gazette: “Nike has been going downhill for a while”.

Although he says this decline is “accelerating”, Harewood adds: “At least it’s recognised it’s got a problem and has put a plan in place to turn things around.”

But what factors have contributed to its declining performance in recent years?

Moses Rashid, founder and CEO of sneaker marketplace The Edit LDN lists a few reasons.

“The lack of innovation in new silhouettes, over-saturation of releases which has seen multiple releases weekly in a climate where discretionary spend is down. For me, the easier the sneaker is to get your hands on, the less desirable it is, meaning the hype goes.”

“We, as consumers, want to see something new and different. Gone are the days of buying an Air Force 1 in every single colour. We thrive off getting the limited release, the sneaker that not everybody has. In turn, this approach has seen the influence shift to up-and-coming brands, and shift consumer interest.”

Harewood agrees that the biggest contributing factor to Nike’s struggles is its lack of innovation across its product range.

He says that Nike’s reliance on its most popular shoe – the Air Force 1, which debuted over 35 years ago – is a clear example of this.

While its approach of capitalising on the designs that customers knew and loved worked during the pandemic, as the world reopened, consumers wanted newness and Nike’s lack of fresh offerings became apparent.

Harewood adds: “During Covid it let its creation team fall apart, and now what’s happening is brands like On and Hoka have kept building and developing and expanding their product ranges.”

“Now the kids are looking at this stuff that’s new, shiny and different and they are literally eating Nike’s lunch.”

Even some of its stockists agree that lack of innovation is hurting Nike. Back in March, JD Sports boss Régis Schultz admitted that the brand’s sluggish innovation was contributing to flat sales at his business.

“Nike has been so successful but they just stopped a little bit bringing in new stuff,” Schultz told Bloomberg. “At the same time Adidas is doing very well, New Balance is doing very well.”

The CEO went on to say that shoppers quickly “get bored”. “If you don’t bring in new stuff, new product, new innovation, new colour – I think the demand is suffering,” he added.

Major missteps

Aside from the lack of innovation, other strategic missteps have been made.

Back in 2017, Nike launched its Consumer Direct Offense, as it looked to expand its direct-to-consumer (DTC) business, and lower its reliance on wholesale accounts.

That included saying goodbye to many wholesale partners as well as ending its high-profile Amazon.

However, Rashid says this approach has hurt the business. “The decision to overstock with DTC only, has seen the market shift away from Nike. It used to have the right balance, but it changed its stance and has been impacted,” he says.

And it looks like Nike agrees – to some degree.

Earlier this year CEO Donahoe said: “While our consumer direct acceleration strategy has driven growth and direct connections with consumers, it’s been clear that we need to make some important adjustments.”

Last year, Nike revealed it would be reinvesting in wholesale partnerships, with old stockists and new ones, after it became clear that cutting ties with over 50% of its partners was too drastic a step.

Although its DTC sales edged up 1% over the last year, in its last quarter they fell 10%.

GlobalData head of apparel research and analysis Chloe Collins explains that it’s about having “the right blend” of both DTC and wholesale.

“A lot of DTC brands at the moment are realising they they do need the exposure through wholesalers,” she adds.

Nike is clearly trying to make sure its working with the “right” wholesalers, to ensure that its image, the presentation of its products and brand is presented well, because otherwise it can damage their reputation, Collins says.

Meanwhile, Rashid highlights the problem of Nike saturating the market with certain lines. He uses its Dunk Panda shoe “as a prime example”.

“At one point hitting market prices of £250+ in all sizes, it was desirable. However, Nike continued to restock and restock to a point where almost everyone in London appears to have one, which in turn has seen this pair available at retail price at almost every outlet.”

“Why is this important? It took this approach with multiple sneakers which at one point were desirable and creating multiple versions of it. Gone are the days where we used to stand in queue and post when we finally got ‘that’ pair.

“Over time, it’s worn us down and the desirability has gone.”

Rising rivals

The sportswear market has always been crowded, however an influx of newer brands have made it more competitive than ever. Brands across the spectrum have been gaining traction and stealing market share from Nike.

Brands like Adidas, On, New Balance, Hoka, and Lululemon are just a few names tapping into areas that Nike hasn’t prioritised in recent years.

For example, Hoka and On have developed popular performance-based running shoes, while Lululemon has become synonymous with fashionable yet functional athleisure.

Collins says that Nike has “got so much competition now”

“Not even just Lululemon, but you’ve got brands like Tala, Alo Yoga and Adanola, all fashionable athleisure brands that lauched off the back of Lululemon’s success.”

These brands have particularly resonated with women as Collins says their fashion credentials mean they can be worn day to day, unlike Nike, which she says is still seen as purely a brand for exercise rather than style.

She explains: “There’s been a real athleisure boom since the pandemic, which has born all these new brands that just hit the brief a lot more with females. I think females want more of that trend aspect.”

On the performance shoe side of things, Hoka and On have been growing rapidly. Harewood says: “Their shoes are seen as more innovative and appealing to younger consumers.”

Earlier this year, On unveiled blockbuster partnerships with American actress Zendaya and British singer FKA Twigs as it deepens it push into clothing, further solidifying their position as the most desired new players in the market.

And the numbers prove it. Hoka and On Running’s market share have more than tripled during the pandemic, according to the latest sports footwear research from GlobalData.

Hoka’s share jumped from 0.2% in 2019 to 0.7% in 2022, and On ‘s quadrupled from 0.3% to 1.2% – with Nike’s share falling from 23.4% to 22.1% over the same period.

With On and Hoka’s star rising rapidly over the past two years, more share is likely to have been gobbled up.

Harewood says that “Nike fell asleep at the wheel”  by failing to recognise shifting consumer preferences towards quality products.

He explains that in the past, consumers were wooed by the hype and flashy marketing that Nike is known for. However, the current consumer preferences for quality products plays into the hands of rivals like On, which is known for their innovative approach to sportswear and durable products that stand the test of time.

“Nike has always known its had a quality problem, but its always been able to live behind the hype and the glamour and the excitement. I’ve always said Nike is a marketing company that just happens to sell shoes,” says Harewood.

He adds that the business has also been “way too focused on the youth market” of 15 to 18 year olds, neglecting the important 20 to 30 age bracket, which he calls a major mistake because “they will be loyal customers for much longer”.

Meanwhile, some of the more established sportswear brands have become resurgent again.

Rashid says: “Adidas has leaned into the Samba through to Gucci Gazelles. It’s managed to become culturally relevant again.

“New Balance have tapped into cool collaborations with Joe Freshgoods and Aime Leon Dore, leaning on functional and clean styles, backed with great marketing using likes of Arsenal’s Bukayo Saka and Chicago Bulls’ Zach Levene.”

Rashid adds: “The big thing for me is Nike used to really drive culture, and it feels like they need a stronger cultural influence at the helm to support this.”

His comments follow a raft of senior creative leaders exiting Nike in recent years.

Chief design officer John Hoke, known for driving its innovation in design, departed in 2022, while Michael Spillane, president of consumer creation who was instrumental in product innovation and global brand strategy, announced his retirement last year after 16 years with the company.

Keeping up with the times

Rashid believes that Nike hasn’t kept up with consumer preferences when it comes to trainers, which over the past year has been towards more functional silhouettes.

Brands like New Balance, Hoka, and On Running have benefitted significantly, with their products going viral across social media.

In contrast, he says: “Nike hasn’t really tapped into this market with the coolness that we’re used to. There is still a need for consumers to want something different. Nike’s approach of regurgitating their styles has left us with fatigue.”

This, combined with the fact that shoppers are just spending less, has hit the sportswear giant.

Rashid says: “Historically, we used to buy multiple pairs of sneakers monthly. Now consumers are buying fewer items.”

Another way Nike hasn’t kept up with the increasingly hard times is with its prices, which have crept ever higher even amid the cost-of-living crisis.

On the back of its weak results last week, the business said it would launch a new $100 (£79) and under trainer line that will roll out globally to help drive growth.

Collins says that with many consumers struggling financially, “it’s important for Nike to have some more entry-level price points”.

However, she adds that having cheaper shoes may not be enough to convince shoppers to choose Nike over other trainer brands as “it still needs to have the best product as well”.

She stresses it also needs to focus on product differentiation and standing out from competitors like Adidas, Hoka, and other running specialists.

What next for Nike?

Harewood believes that Nike must refocus on innovation if it wants to regain its dominant position at the top of the market.

“They need to prioritise developing new, innovative products again,” he says.

Nike claims to be doing just that. Last week, Donahoe said: “We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike’s future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.”

The sportswear titan has kickstarted “a multi-year innovation cycle”.

Donahoe explained: “We’ve been accelerating our innovation pipeline, including pulling forward several innovations, some more than a year. We’re moving aggressively to re-establish our innovation edge.”

He said it began with performance lines, which he highlighted grew double digits in its last quarter.

Harewood adds that Nike should be broadening its target market beyond just youth and have a stronger focus on women’s products, to capture both these important targets.

Donahoe said that fitness represents one of its largest market share opportunities, particularly for its female consumer, and it plans to make “meaningful investments” in the area.

He highlighted that statement leggings, which he deemed “a key focus for us”, were up high double-digits in Q4, led by innovations it had introduced over the past few quarters.

Harewood is hopeful the brand can turn itself around. “With these strategic shifts, I believe they can rise in dominance if it manages to refocus on the areas that made it into the brand it is today – innovation, quality and appealing to all consumer groups,” he says.

With a clear innovation problem to deal with, Rashid adds that “sneakers is all about the culture and community and it feels like Nike has lost some of its identity”.

“I’m still a huge advocate but something feels like it’s lacking,” he says, emphasising that it “rooting for Nike to pull it back”.

Donahoe is determined to do just that – and is keen to use the summer of sport to show the world what Nike can do.

He said: “The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world. This is led by breakthrough innovation and announced by a brand campaign that you won’t be able to miss.

“We can’t wait to bring all this Olympics product to life across the Games and in more than 8,000 doors worldwide. This summer we will cut through the clutter to create powerful energy for the Nike brand. We’re back doing what we do best: creating impactful storytelling and ultimately,
brand distinction in sport.

“In the end, we’re taking our challenges head-on, and we’re regaining our edge.”

That is quite the call to action. The stage is set for Nike to recapture the hearts and minds of consumers during this summer of sport.

As the gymwear giant prepares to open its second store in Westfield Stratford this weekend, CEO Ben Francis speaks to Retail Gazette on his expansion plans as he looks to make Gymshark “a globally iconic brand”.

Learnings from its first store

Gymshark first entered the world of bricks and mortar back in 2022 when it opened the doors to its highly anticipated Regent Street store.

The much-hyped store has garnered results.

Francis says: “I’ve been blown away by how well it’s done, both in terms of the commercial performance of the store, but when you add on the events that we’ve run and the community that we’ve been able to build, and the people that have gone in and purchased in the store before purchasing online as well.”

Cracking the world of physical retail is no mean feat for the online specialist. “We hadn’t run a store before and we didn’t really know how it would go. It was very much ‘we’ll see how it goes’ and then hopefully we’ll be able to do more  – whereas now Regent Street has been incredibly successful.”

“We’ve learned that the customer loves events, and they love to be able to touch and feel the product and try the product on which is great as well.”

As the brand readies to open its Westfield Stratford City store this weekend, Francis explains that much like Gymshark Regent Street, its new store will house specific events in the space – from athlete meet and greets to activations.

“It’s a slightly different shopping experience to Regent Street. This is a smaller, more shopping focused and more product focused space”, which he says will enable it to highlight different product ranges.

Store expansion

It comes as no surprise that Gymshark is looking to open more stores on the back of the success of Regent Street – but Francis plans to be picky.

“I want great locations that are in places that our customers are, that really allow us to showcase the brand,” he says. “We are actively looking across the UK, the US, and Europe, but we are committed to finding the right units before we agree to anything.”

He explains that Gymshark will be “unit-led” rather than targeting store numbers or specific locations.

“Rather than saying, ‘We’re going to open a store in Manchester,’ we need a really great unit,” he says.

Internationally, the US is a big focus as it looks to double down on its biggest market.

“We’re actively looking around the world. But again, it’s all about finding that right location. The US is our biggest market and also our biggest opportunity,” Francis explains.

“It’s the biggest fitness market in the world, and our goal is to become a globally iconic British brand. We want to be known not just online but across all facets of the market, and that requires a strategic presence in key locations.”

Each new store will be designed to host specific events, and meet-and-greets, ensuring that Gymshark’s community-building efforts are consistent worldwide.

“We want to take learnings from our existing stores but also adapt to local nuances,” Francis says. “In the US, stores might look slightly different due to product or local preferences, but the core experience of community and high-quality products will remain the same.”

However, he says it is “still really focused on the UK”. “We’ve got two stores in the world, both here. Our headquarters is in the UK and there’s no plans on changing that at all. My dream is for us to be a globally iconic very British brand. I want it to be iconic all around the world”.

Digital pioneer Francis, who set up Gymshark as a 19-year old in 2012, is clearly a convert to the world of stores

He says they help to “really showcase the product”.

“It’s making the product more available, because there’s still a large proportion of customers that don’t shop online. The the fact that someone can walk through this shopping centre (Westfield Stratford) which is one of, if not the busiest shopping centres in the UK, and think ‘I’ve seen Gymshark online, let’s pop in have a look at the product’ – that’s where stores really worked for us.”

With one store open so far, Francis admits that it accounts for a “very, very small” amount of the brand’s sales but he says “it will inevitably be a growing percentage over the next three or four years.”

However, he promises Gymshark is “not going to go and open 50 stores next year”.

The power of community

Since its inception, Gymshark has managed to develop a strong community and culture around its brand, almost reaching cult status.

Francis says events are key to growing that community as it expands, adding that “Gymshark is “really, really focused on the community and the purpose of our brand and our products”.

Last month it launched its new brand platform ‘We Do Gym’ in a bid to “deliberately position” the business as a gym brand first and foremost, setting itself apart from athleisure rivals.

The new platform acts as the foundation for all of its brand and marketing activity for the coming 12 months, specifically designed and named to tell everyone, including existing members of the community, what Gymshark is all about.

Francis explains: “I think the risk of losing that community becomes larger when we overexpand and try be something for everyone.

“‘We Do Gym’ is us saying, we’re not going to focus on sportswear, for example, we’re just going to do gym.”

The launch has been met with praise, which Francis calls incredible, because the campaign harks back to the roots of the brand.

“There’s so much temptation to over expand. Expand your product range, expand your brand, expand commercially and by putting these natural constraints on the business by saying this is what we need to be focused on one, it helps us in terms of our allocation of resources internally and focus on being really good at one thing rather than average at lots of things.”

He stresses that it also makes communication to the customer “really simple and really easy and people can know what Gymshark stands for within two seconds of seeing it”..

Expanding horizons

Earlier this year, Gymshark officially opened a permanent space in Selfridges in London and Manchester Trafford Centre as the department store became the activewear giant’s first-ever wholesale partner.

The Gymshark spaces, which appear in both the women’s and men’s departments, feature a selection of mainline products, popular best-sellers, and exclusive limited-edition ranges, including its first premium athleisure range.

Francis says: “I think Selfridges is an amazing business. I want this to be a globally iconic British brand and Selfridges is a globally iconic British brand. So partnering with a great brand like Selfridges is only beneficial to both parties”.

He adds that it also gives Gymshark an opportunity to showcase its brand to a slightly different consumer, which he says has “been incredibly successful”.

Earlier this year, the business appointed former Adidas global VP Hannah Mercer to the newly created role of general manager for wholesale and retail.

In her role, Mercer will be responsible for the growth of the business across all physical channels “to represent the best of the brand globally”.

Francis says her appointment ties into its international expansion plans.

“We see a big opportunity for Gymshark to be an omnichannel brand around the world and like I said before, being a globally iconic brand. Globally iconic brands don’t just exist online. They exist in all of the different facets of the market and that’s what we now need to do. Go from being an online brand to a true omnichannel and a global brand.”

Francis is clearly on the right track as the brand that he started in his bedroom at the age of 19 is now valued at $1.45bn. With more stores in more countries on the horizon, that hefty valuation may grow even higher.

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CEO Elliott Hill, who returned to the sporting giant in October, said the brand had become “too promotional,” and insisted that “being premium also meant full price,” The Times reported.

Speaking to investors on Thursday (19 December), he explained the chain’s website had been offering a 50-50 split of full price and discount items.

It comes after Nike withdrew its full-year forecast after first-quarter revenues plummeted 10% in October.

Nike has faced heavy competition from rivals like Hoka and Adidas in recent times. In July, Adidas reported that it could see its highest profit margin in three years thanks to the success of its Samba and Gazelle shoes and weaker sales at Nike.

Nike has been accused of focussing too heavily on lifestyle brands and losing influence in sportswear.

Hill said: “We haven’t been maximising our strengths. Moving forward, we will lead with sport and put the athlete at the centre of every decision.”

He added: “The reliance on a handful of sportswear silhouettes is not who we are. We will get back to leveraging deep athlete insights to accelerate innovation, design, product creation and storytelling.”

The executive warned while the retailer’s turnaround plan would have a “negative impact” on its near-term results, he insisted the leadership team were using a long-term approach in order to deliver value for shareholders.

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Spanning 29,000 sq ft across two floors, it features a selection of fitness and performance wear, equipment, and footwear from brands including Nike, Adidas, Under Armour, Puma, and Asics.

The site features the retailer’s running concept, its newly introduced outdoor concept, and dedicated sections set out for various sports categories.

Frasers Group CEO Michael Murray said: “As a leading global retailer in sports, Sports Direct is committed to providing customers with unparalleled access to the best brands and the best sports retail experience.

“We understand the importance of evolving to meet consumer needs – especially in a crucial market like London. With this opening, we’re building on the successful formula from our Oxford Street store, bringing another unmatched destination for sports enthusiasts.”

It comes after Frasers Group announced plans to open two new Sports Direct stores at Westfield’s London centres earlier this year.

With the first shop now open, the sportswear giant’s Westfield Stratford site is set to open in spring 2025.

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The European Public Prosecutor’s Office (EPPO) said on Wednesday that it was pursuing a “criminal investigation” against a German “corporate group trading in sportswear” over “suspicions of tax evasion relating to customs duties and import sales tax”, The Financial Times reported.

While the EPPO did not name Adidas, the German sports giant confirmed the raids and said it was “cooperating with the authorities and providing the necessary documents and information”.

The raids are understood to have included the brand’s HQ in Herzogenaurach, other business locations and employee’s private residencies over suspected cumulative tax damage at more than €1.1bn.

Adidas said that it did not expect “any significant financial impact” from the investigation and that it had been aware of the investigation “for several years”.

It claimed the issue was caused by “different interpretations of German and European law” and that the company “continues to work closely with the customs authorities”.

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Downs will head up the sportswear brand’s commercial operations to help drive its “next chapter of expansion”.

He joins from Fanatics International, where he spent 15 years as head of commercial development and later as its first general manager.

Co-founder and co-chief executive Tom Beahon said: “We’re delighted to welcome Danny to the team at Castore and are excited for him to lead our commercial operations as we continue our development as the UK’s fastest growing retailer.

“Danny will play a crucial role in how Castore develops and we’re excited to have him here as a high-performing executive aligned with our pursuit to relentlessly improve.

“He brings a wealth of sporting and commercial knowledge from his time at Fanatics International and past legal career, as well as a passion for fan engagement.”

Downs added: “I’m very excited to be joining Castore as we continue to challenge the big players of the industry and am looking forward to supporting its growth trajectory.

“With record-breaking product launches in the last year and new partnerships to come, I look forward to driving the progression of the business development and team partnerships functions at Castore.”

Castore hired former JD Sports exec Peter Alecock to serve in its newly-created position of commercial director back in July.

He is tasked with managing the brand’s overall channel performance in retail, wholesale and ecommerce for both partnerships as well as its mainline divisions.

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Retail Week reports that Forsey, known for being Mike Ashley’s right-hand man, will take on the role of general manager for the Asia Pacific, Middle East, and Africa (APMEA) regions.

The role will see him based in Malaysia, with regular trips to the retail giant’s London office for two weeks every two months.

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Forsey, who began his career at Sports Direct as an 18-year-old Saturday worker, worked closely with Ashley for over three decades, eventually taking on the job of CEO.

He stepped down in 2016 amid controversy over zero-hour contracts and reports of warehouse staff being paid below minimum wage.

After leaving Sports Direct, Forsey took on consultancy work before joining Revolution Beauty as managing director, a position he held for three years until February 2023.

Frasers Group confirmed Forsey’s return but declined to comment further.

The move comes as the Sports Direct owner cut its profit outlook for the year to a range of £550m to £600m as group sales fell 8% in the 26 weeks to 27 October.

Frasers’ pre-tax profit had dropped 33% to £207.2m during the period, down from £310.2m the year before, due to a decrease in foreign exchange and the material decline in the Hugo Boss share price. On an adjusted basis, it slipped 1.5% to £299.2m.

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The Sports Direct owner, which is the chain’s second largest shareholder, holding a 25.8% stake, will offer 10 kroner for every share of equity that it does not own, valuing the retailer at around £17.45m.

Frasers said it has the “relevant experience to have a chance at saving XXL”, which has been suffering with profitability challenges in part due to stock availability issues. The retailer operates 85 stores in Norway, Finland and Sweden.

The group said, subject to satisfactory due diligence and completion of the offer, that it was willing to provide support XXL’s stock shortage by cosigning up to £35m (500m kroner) of stock on a delayed payment basis whereby XXL will not be required to repay Frasers until the stock is sold.

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It added it can “provide XXL with products and brands that will make XXL’s retail offering more attractive and ease XXL’s cash requirements”.

The offer document will be available to XXL shareholders in January 2025, Frasers confirmed.

Group chief executive Michael Murray said: “Our strategic vision and industry experience position us uniquely to help XXL navigate its current challenges. We are committed to ensuring that XXL reaches its full potential.”

Earlier this week the group said it was lowering its profit expectations for the year by £25m, citing “tougher” trading conditions after half-year sales in its retail arm fell 8.4% to £2.45bn.

The retail giant reported its pre-tax profit had dropped 33% to £207.2m during the period, down from £310.2m the year before, due to a decrease in foreign exchange and the material decline in the Hugo Boss share price. On an adjusted basis, it slipped 1.5% to £299.2m.

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The retail giant reported its pre-tax profit had dropped 33% to £207.2m during the period, down from £310.2m the year before, due to a decrease in foreign exchange and the material decline in the Hugo Boss share price. On an adjusted basis, it slipped 1.5% to £299.2m.

Group sales fell to £2.54bn, dragged down by a 20% drop in financial services revenue to £45.7m and an 8.4% dip in its retail arm to £2.45bn.

Frasers noted a weaker performance across its entire retail division, with premium lifestyle sales down 14% to £472.7m and UK sports retail down 7.6% to £1.37bn.

Its growing property portfolio helped boost sales for the division by 21% to £38.0m.

The group said it expects to deliver “another year of adjusted pre-tax profit progress in FY25”, however, it cautioned that recent trading conditions have been “tougher” as consumer confidence has weakened.

As a result, it lowered its full year outlook and anticipates reporting an adjusted profit before tax to fall between £550m to £600m, down from a range of £575m to £625m.

The retailer estimated that it expects to incur “at least £50m” of incremental costs going into its next financial year as a result of the recent Budget.

Frasers Group chief executive Michael Murray said: “The first half of this year has been another period of progress for the Group, delivering on our objectives as the Elevation Strategy continues to take the business to the next level.

“Sports Direct UK delivered further sales growth, and our property and financial services divisions are seeing encouraging progress.

“We continue to operate with discipline to ensure our business is as resilient as possible – proactively right-sizing recent acquisitions to set them up for profitable long-term growth and driving further automation benefits to exceed our stock reduction targets for the period.

“We have also made significant strides in international expansion, developing new partnerships across Australia and Africa, and unlocking opportunities as we move further towards our goal of becoming a leading global sports retailer.

“We are set to deliver another year of profitable growth but, given recent weaker consumer confidence leading up to and following the Budget, FY25 APBT is now expected to be in the range of £550m to £600m.”

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As the year draws to a close, Retail Gazette takes a look back at the retailers that went bust over the past 12 months.

Homebase

Homebase became the latest casualty on the high street last month when it plunged into administration after failing to secure a new buyer.

The home and DIY chain called in administrators at Teneo, the firm it had been working with to explore its cost-saving options after it sunk to an £84m loss in the year to January 2023.

Homebase’s brand name, intellectual property, and up to 70 of its UK stores was quickly snapped up by The Range and Wilko owner CDS Superstores in a pre-pack deal for £25.6m – a move that leaves 49 stores and around 2,000 workers at risk of redundancy.

The retail giant said the DIY chain’s brand will continue to run online, and the acquired stores will continue to trade as Homebase over the coming months but will re-open as The Range with a “much broader choice across garden, showroom and DIY categories”.

It is understood that M&S and Kingfisher are considering acquiring some of the chain’s remaining stores.

CTD Tiles

Tile supplier CTD Tiles was rescued from administration by Topps Tiles in August.

Topps  acquired the supplier’s brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, 30 of its retail stores, selected stock and all related intellectual property.

The retailer said CTD was “complementary” to its existing businesses and that the acquired stores and assets provide it with “the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the architect and designer segment”.

However, the deal did not include 56 CTD Tiles stores, which administrators at Interpath confirmed will be disposed of through the administration process.

The acquisition invoked ire from one of Topps Tiles major shareholders, with MS Galleon’s managing director Piotr Lipko slamming the deal  as “unequivocally irrational” and “highly detrimental” to the interests of the company.

Carpetright

Carpetright collapsed into administration in July after it failed to secure new investment.

The flooring giant was subsequently sold to its largest rival Tapi, which acquired its intellectual property, two warehouses and 54 of its stores.

Tapi said that saving the entire business was “unviable” as Carpetright had been materially loss making for a number of years and had racked up “significant debt”. It also cautioned of how the Competition and Markets Authority would view a larger deal.

At the time of its collapse, Carpetright owed at least 11 retail businesses including B&M, Furniture Village and Lidl nearly £3.5m in outstanding rent charges and some 21,000 customers £8m in outstanding orders.

It’s not the first time that Carpetright has found itself in troubled waters, with the business launching a company voluntary arrangement (CVA) in 2018 in an attempt to bring its losses under control.

The Floor Room

Carpetright’s administration quickly triggered the collapse of sister firm The Floor Room.

The flooring specialist’s 34 John Lewis concessions, standalone London store and online operation was closed by administrators at PwC “with immediate effect” in August, resulting in 201 redundancies.

Following its collapse, John Lewis said it would proactively offer roles where it can to its former partners at The Floor Room, who transferred across when it opened the concessions in 2022.

Smiffys

Ted Baker found itself in trouble in April when the brand’s UK operator No Ordinary Designer Label called in administrators.

No Ordinary Designer Label (NODL) – which licenses the brand in the UK and Europe from Authentic Brands Group (ABG) – collapsed after ABG terminated its relationship with AARC, the Dutch firm that ran the brand’s UK operation the month before.

ABG chief strategy and transition officer John McNamara said at the time: “Despite our tireless efforts, the damage done during a period under AARC in which NODL built up a significant level of arrears was too much to overcome.”

The fashion chain was forced to shutter all 46 of its stores and cut more than 700 jobs by the middle of August.

Authentic announced the following week that its US partner for Ted Baker United Legwear and Apparel (ULAC) would extend its responsibilities to run the UK operations as well. It relaunched the brand online last month.

Matches 

Frasers Group put luxury fashion etailer Matches into administration in March just three months after it acquired the business in a £52m deal from Apax Partners.

The Mike Ashley-controlled retail empire said the fashion business had “consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses”.

It appointed administrators at Teneo to handle the process, which has since seen 273 staff members across buying, communications, analytics and marketing made redundant.

Former Matches boss Nick Beighton branded the company’s administration as “unnecessary”, claiming there was still a chance to turnaround the luxury ecommerce platform before Frasers placed it into administration.

Muji

Japanese retailer Muji filed for administration at the end of March as part of a wider reorganisation from its parent company.

The retailer’s UK stores – which include six in London and one in Birmingham – were retained in a pre-pack administration with the firm’s European holding company.

A spokesperson for the business said that “Muji will receive significant investment from its main shareholder and has plans for new stores and an improved e-commerce offer in Europe” following the restructuring.

Muji told TheBusinessDesk.com: “This is part of a planned strategic restructuring of the business and Muji’s management expect to conclude a deal shortly.

“For Muji’s colleagues and customers in Europe it is business as usual – all stores and ecommerce will continue to operate as before, and all new and outstanding orders will be fulfilled.”

Farfetch

Farfetch was sold to South Korean ecommerce giant Coupang at the start of February through a pre-pack administration deal.

The sale included a £394.7m bridge loan to help the ecommerce player avoid bankruptcy while the deal was finalised. The luxury etailer was able to explore other potential suitors for all or part of the business while details of the transaction were agreed.

Warnings signs flashed when the New York-listed company cancelled its quarterly earnings report in December and said it “expects to provide a market update in due course”.

It then began discussions with several parties, including Apollo and shareholder Richemont, about securing new financing.

Since its sale to Coupang, Farfetch founder José Neves has stepped down from the business and between 25% and 30% of its workforce is said to have been made redundant as the new owner works to “streamline the business”.

The Body Shop

The Body Shop emerged from administration at the start of September under new owner Aurea, a consortium led by the British cosmetics tycoon Mike Jatania.

The vegan beauty chain, which had more than 200 stores nationwide, collapsed in February just weeks after private equity giant Aurelius acquired the chain from Brazillian beauty group Natura & Co.

Administrators at FRP put the retailer up for sale after it concluded that an alternative restructuring under Aurelius, which continued to fund the business through the process, was not viable.

FRP had explored a company voluntary arrangement (CVA) for The Body Shop following a shop closure and redundancy programme.

New owner Aurea relocated the retailer, which is being spearheaded by Molton Brown CEO Charles Denton, back to Brighton in what it said marks a “significant cultural reset” for the business.

Lloyds Pharmacy

Lloyds Pharmacy owner Aurelius placed the company into liquidation at the start of the year as it concluded its year-long divestment campaign.

The pharmacy – which was once the second biggest chain in the UK – had been quietly closing its stores and selling most of them to independent retailers and smaller chains during most of 2023.

The business shuttered all its 237 branches inside Sainsbury’s supermarkets in June 2023 in a move that is thought to have cost around 2,000 jobs.

LloydsPharmacy, which blamed a cut in government funding for its widening losses and store rationalistion programme, now operates as an online doctor service, clinical homecare and for patients in NHS hospitals, prisons, community health trusts and the private sector.

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