Unemployment among young people in the UK is hitting sales growth and profits at JD Sports, the owner of the trainer and sportwear chain has said, amid warnings about the high number of under-25s not in work, education or training. The UK was the worst-performing market for JD Group, which also owns Blacks, Go Outdoors and a number of US and European sports chains. Régis Schultz, the chief executive, said JD was experiencing “pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment”. His comments came as official figures on Thursday showed the number of 16- to 24-year-olds who are not in education, employment or training (Neet) remains stubbornly close to the highest level in a decade. The squeeze on spare cash for young people contributed to a 3.3% slide in sales at established JD Group stores in the three months to 1 November. Sales were also down in the US and EU – by 1.7% and 1.1% respectively – amid similar pressures as well as a lack of new product launches to draw in shoppers and the slowdown in the trend for women’s vintage trainers. D said annual profits would now be at the lower end of expectations, at about £853m, compared with a once-hoped-for £1bn.
BBQ - How blame can JD Sports put on the external pressures of youth unemployment? Do they need a new strategy?
