Intersport must "step on the gas online," says new boss Victor Duran
In an interview with the Sonntagszeitung, the new Intersport CEO, Victor Duran, explains why the company is focusing more on online sales rather than expansion.
Franz Julen stepped down as CEO of sports retailer Intersport at the end of 2016 after 17 years and handed over the helm to his successor, 50-year-old American Victor Duran (Werbewoche.ch reported).
At the time, Intersport had launched a new digital strategy. Franz Julen also announced that, among other things, the company wanted to push ahead with its expansion in China - his expansion course meant that Intersport is now represented in 45 countries.
Paused expansion
Under the leadership of Victor Duran, this course is now being slowed down. He told the Sonntagszeitung that the expansion had been "perhaps a little too fast" - so the company is now taking a break. In addition to concentrating on the core business in Europe, the online sector in particular is to grow more strongly instead.
Online sales at Intersport today account for just one percent - in the U.S., the figure for sports retailers is already 20 percent, and in Europe it's 10 percent on average. We are lagging behind and must now "step on the gas online," says Duran. If you don't offer attractive online stores, you'll be left behind by the competition.
Amazon, Nike and Adidas as main competitors
They are particularly afraid of the powerful online retailer Amazon. But also of the "very well done" and fast-growing online stores of brands such as Nike and Adidas, which are partners in the online sector but also competitors at the same time, says Duran. "If we do our homework in the online and stationary business, however, we need not fear any competition," the new Intersport boss is convinced.
New store concept to combat dwindling sales
Duran also wants to equip Intersport for the future with a new store concept. The stores are to be more modern, more spacious and offer clearly defined standards, such as electronic foot measurement. In addition, the lifestyle, women's and children's areas are to be expanded: "Today's customer wants a sports retailer to look like a fashion store," says Duran, who has lived on Lake Geneva since 2000 and is currently in the process of becoming a naturalized citizen.
Intersport is the fourth largest sports retailer in Switzerland after Ochsner Sport, SportXX and Athleticum. However, the industry has been struggling with a shrinking market for years. According to GfK estimates, for example, total sales fell by 5.6 percent last year. Reasons for the decline include the shift to the Internet, shopping tourism and the lack of snow in winter. (hae)
