Hey guys, in today’s article, we’re going to be talking about the recent acquisition of Go Outdoors. The popular outdoor retailer has recently been bought out by JD Sports, a move that’s been creating waves across the retail sector.
For those of you who aren’t familiar with Go Outdoors, they’re a British retailer that specializes in outdoor clothing and equipment, catering to hikers, campers, and general adventurers alike. They’re beloved by many for their great selection of gear, affordable prices, and extensive knowledge of the outdoors.
However, the recent acquisition by JD Sports has been met with mixed reactions. Some are worried that this could result in a change in the company’s identity, or lead to price hikes and reduced competition in the market. Others are hopeful that the move could help Go Outdoors further expand and improve their offerings. Only time will tell what the future holds, but either way, it’s definitely an interesting development to keep an eye on.
Acquisition of Go Outdoors
Go Outdoors, one of the UK’s leading outdoor retailers, was acquired by JD Sports Fashion Plc in November 2016 for £112 million. The acquisition gave JD Sports Fashion a total of 58 stores across the UK.
- The acquisition allowed JD Sports Fashion to expand its portfolio in the outdoor market, which was a new sector for the company.
- Go Outdoors had a loyal customer base, and the acquisition allowed JD Sports Fashion to tap into that customer base.
- The acquisition was part of JD Sports Fashion’s strategy to expand its presence in the UK retail market and increase its market share.
The acquisition of Go Outdoors was a significant move for JD Sports Fashion as it expanded the company’s retail offerings beyond its core focus on sports fashion. Go Outdoors specializes in outdoor clothing, camping gear, and equipment, catering to a different market segment. The acquisition provided JD Sports Fashion with an opportunity to diversify its revenue streams and tap into new customer segments.
The acquisition also allowed Go Outdoors to leverage JD Sports Fashion’s resources, including its supply chain and logistics networks. With JD Sports Fashion’s support, Go Outdoors was able to expand its product range, improve its online platform, and improve its delivery times, making it a more efficient and effective retailer.
| Acquiring Company | Acquired Company | Acquisition Price | Date |
|---|---|---|---|
| JD Sports Fashion Plc | Go Outdoors | £112 million | November 2016 |
The acquisition of Go Outdoors has been a successful move for JD Sports Fashion. Despite the challenges posed by the COVID-19 pandemic, the company has continued to perform well, with its share price increasing by over 40% in 2020. The acquisition has given JD Sports Fashion a foothold in the outdoor retail market, allowing it to diversify its revenue streams and tap into new customer segments.
Go Outdoors company background
Go Outdoors is a UK-based retailer of camping gear, outdoor clothing, bicycles, and outdoor equipment. It was founded in Sheffield in 1998 by John Graham, a former sports store manager. The company started as a small independent retailer, but it quickly grew due to its focus on customer service, product range, and competitive pricing.
- In 2004, Go Outdoors opened its first superstore in Coventry, which was followed by stores in Manchester and Sheffield.
- By 2016, the company had 58 stores across the UK, employing over 2,300 staff.
- Go Outdoors continued to expand rapidly, with plans to open more stores in the following years.
The company’s success was due to its commitment to offering a wide range of quality products at competitive prices, combined with excellent customer service and expert advice. Go Outdoors also invested in its staff, providing them with ongoing training and development to ensure they were knowledgeable about the products they were selling.
However, in 2016, the company faced financial difficulties and was put up for sale. In the following year, JD Sports Fashion Plc bought the company, securing its future and continuing to expand its presence across the UK.
| Company Name | Ownership | Location | Number of Stores |
|---|---|---|---|
| Go Outdoors | JD Sports Fashion Plc | UK | 67 |
Today, Go Outdoors is one of the leading outdoor retailers in the UK, with 67 stores nationwide. The company continues to focus on providing customers with a wide range of quality products at competitive prices, backed up by expert advice and excellent customer service.
Go Outdoors Financial Performance
Go Outdoors is one of the largest outdoor equipment retailers in the United Kingdom. Founded in 1998, the company has grown to operate over 60 stores nationwide offering a wide range of products such as camping equipment, tents, outdoor clothing, hiking gear, and footwear. In 2016, JD Sports acquired the company in a deal worth £112 million. However, the brand has struggled in recent years, facing several challenges including increased competition from online retailers and adverse economic conditions.
- Revenue: In the 2019 financial year, Go Outdoors generated revenues of £233 million, a decrease of 5.5% from the previous year. This decline was attributed to a drop in footfall in its physical stores, which was caused by increased competition from online retailers and adverse economic conditions.
- Profits: Go Outdoors reported a loss of £1.1 million before tax in 2019, compared to a loss of £3.9 million the previous year. The company has been trying to cut costs and improve its in-store experience to improve profitability, but it is still facing significant challenges.
- Online sales: One of the biggest challenges facing Go Outdoors is the rise of online retail. The company has been trying to increase its online presence through its website and social media channels. In 2019, online sales grew by 5% and accounted for 17% of the company’s total revenue.
Despite facing challenges in recent years, Go Outdoors remains one of the leading outdoor retailers in the UK. The company is focusing on improving its online presence and customer experience in its physical stores to remain competitive in the market.
Go Outdoors’ Acquisition by JD Sports
In November 2016, JD Sports acquired Go Outdoors for £112 million in cash. The acquisition was seen as a strategic move by JD Sports to expand its presence in the growing outdoor market. At the time, Go Outdoors had a strong brand and a wide range of products, making it an attractive acquisition target for JD Sports.
The acquisition has not been without its challenges, however. Go Outdoors has struggled to maintain its position in the market amidst increased competition from online retailers. JD Sports has been working to address these challenges by investing in Go Outdoors and conducting a strategic review of the business to identify areas for improvement.
Conclusion
Go Outdoors’ financial performance has been mixed in recent years, with declining revenue and a loss before tax in 2019. The company has faced several challenges including increased competition from online retailers and adverse economic conditions. However, the company remains one of the leading outdoor retailers in the UK and is focusing on improving its online presence and customer experience to remain competitive in the market.
| Year | Revenue | Profit/Loss before Tax |
|---|---|---|
| 2019 | £233 million | Loss of £1.1 million |
| 2018 | £246 million | Loss of £3.9 million |
| 2017 | £248 million | Profit of £2.4 million |
Source: Go Outdoors Annual Reports
Reason for Go Outdoors sale
On June 2020, JD Sports Fashion announced that they had bought Go Outdoors, a camping equipment retailer based in the United Kingdom. The sale price was negotiated at £56.5m, saving the business from administration.
- The COVID-19 pandemic played a significant role in the sale of Go Outdoors. After closing down all of its stores on March 26, 2020, the company claimed that it was losing approximately £6m per month in revenue. The closure caused a significant decline in the company’s revenue, and it was in danger of being closed down by its creditors.
- Moreover, Go Outdoors had been in the market without profit for years. The company had struggled to compete in the outdoor retail sector, with fierce competition from giants like Decathlon and Blacks. Also, Go Outdoors’ purchase price, £60m, was a challenge to pay off, made much more difficult by the rise of online competitors.
- Furthermore, Go Outdoors’ parent company, JD Sports Fashion, owned more than 30% of the outdoor retailer’s shares. JD Sports acquired these shares in 2016 and has a history of purchasing financially unstable companies, such as Footasylum and Kukri Sports. JD Sports had secured an option to purchase the rest of Go Outdoors’ shares in 2019, giving JD Sports the upper hand in negotiations in 2020.
By buying out Go Outdoors, JD Sports could buy the business at a reduced price and include it in its portfolio of retail brands. The acquisition of Go Outdoors aligns with JD Sports’ strategy to grow its business through carefully targeted acquisitions.
The sale of Go Outdoors is just one example of how many companies have struggled during the COVID-19 pandemic. Still, with careful purchasing decisions, other firms may be able to survive and even thrive in these challenging times.
| Date | Event |
|---|---|
| June 2020 | JD Sports Fashion announced it had bought Go Outdoors for £56.5m. |
| March 2020 | All of Go Outdoors’ stores closed due to COVID-19. |
| 2016 | JD Sports Fashion acquires over 30% of Go Outdoors’ shares. |
| 2019 | JD Sports Fashion secured an option to purchase the rest of Go Outdoors’ shares. |
Source: The Guardian
Buyer of Go Outdoors
On November 2020, JD Sports Fashion PLC announced their acquisition of 100% of Go Outdoors’ shares after it went into administration earlier that year.
JD Sports Fashion PLC is a British sports-fashion retail company, known for their athletic and leisurewear, along with owning other outdoor and active brands such as Blacks, Ultimate Outdoors, and Millets. The company operates over 800 stores worldwide, with an estimated market value of £7 billion.
- JD Sports Fashion PLC is based in Bury, Manchester and was founded by John Wardle and David Makin in 1981.
- In addition to their retail presence, JD Sports Fashion PLC also has a strong online presence through their website, which provides online shopping and delivery services.
- The acquisition of Go Outdoors marks another addition to JD Sports Fashion PLC’s expanding portfolio, and furthers their efforts to become a leading player in the active and outdoor retail market.
The cost of the acquisition was reported to be £56.5 million, which includes the purchase of all Go Outdoors’ stores, their e-commerce platform, and their inventory. The deal allows JD Sports Fashion PLC to expand their outdoor and active brands and provide more offerings to their customers.
| Buyer: | JD Sports Fashion PLC |
|---|---|
| Acquisition Cost: | £56.5 million |
| Ownership: | 100% |
| Date of Acquisition: | November 2020 |
This acquisition also means that JD Sports Fashion PLC will take on the responsibility of keeping Go Outdoors’ over 2,400 employees. JD Sports Fashion PLC has expressed their commitment to retaining as many jobs as possible and making the transition as smooth as possible for the employees and customers alike.
Impact of acquisition on Go Outdoors employees
When JD Sports Fashion bought out Go Outdoors, it was expected to have a significant impact on the employees of the outdoor retailer. Here are some of the ways the acquisition affected them:
- Redundancies – With the new owners taking over, the need for certain roles may have diminished. Some employees may have faced redundancy as a result.
- New opportunities – On the flip side, some employees may have had the chance to progress within the new company or take on a new role.
- Culture change – With a new owner comes a new company culture, which can be disrupting for some employees. JD Sports Fashion may have different values and priorities that conflicted with those of Go Outdoors’ staff.
Despite the potential challenges, JD Sports Fashion stated that they intended to keep all Go Outdoors stores and staff. In fact, they had ambitious plans to expand the business and create more job opportunities.
As with any acquisition, the impact on employees can vary significantly. Here is a table summarizing the pros and cons:
| Pros | Cons |
|---|---|
| New job opportunities | Redundancies |
| Potential for expansion | Culture change |
| Access to new resources | Uncertainty about the future |
Overall, the impact of the acquisition on Go Outdoors employees was mixed, with some facing challenges while others found new opportunities. It remains to be seen how JD Sports Fashion will continue to manage the business, and what the long-term implications will be for the employees.
Future plans for Go Outdoors under new ownership
Following JD Sports Fashion Plc’s acquisition of Go Outdoors, the company has been focused on making several changes to the outdoor retailer, including new merchandising strategies and store growth plans. Here are some of the future plans for Go Outdoors under new ownership:
- Expansion of product lines: JD Sports plans to expand Go Outdoors’ product lines to include more lifestyle and fashion products to appeal to a wider demographic of customers. This move will help Go Outdoors compete with other outdoor retailers and increase its market share.
- Focus on online presence: With the current shift towards online shopping, JD Sports plans to focus more on Go Outdoors’ online presence. The company aims to enhance the website’s functionality and user experience to attract more customers and increase online sales.
- Opening of new stores: JD Sports also plans to open new Go Outdoors stores in key locations across the UK to increase its reach and accessibility. The company is committed to creating a seamless in-store experience for its customers by improving store layouts and enhancing the product selection process.
JD Sports is dedicated to reinvigorating Go Outdoors and making it a go-to destination for outdoor enthusiasts across the UK. By implementing these strategies, the company hopes to strengthen Go Outdoors’ position in the outdoor retail market and expand its customer base.
In addition to these plans, JD Sports has also made executive changes to the company, appointing Lee Bagnall as the new CEO of Go Outdoors. Bagnall was previously the CEO of JD Group’s outdoor division and brings a wealth of experience to Go Outdoors. He also aims to work closely with the current management team and staff to ensure a smooth transition and continued growth of the company.
| Key Points: | Details: |
|---|---|
| Product line expansion | Inclusion of lifestyle and fashion products to appeal to a wider customer base |
| Focus on online presence | Enhancement of website functionality and user experience to attract more customers and increase online sales |
| New store openings | Opening of new stores in key locations across the UK to increase accessibility and reach |
| Executive changes | Appointment of Lee Bagnall as the new CEO of Go Outdoors |
Overall, JD Sports’ acquisition of Go Outdoors marks a new era for the outdoor retailer. With the company’s ambitious growth plans and commitment to improving the customer experience, Go Outdoors is poised for success under new ownership.
FAQs about Who Bought Out Go Outdoors
1. Who recently bought out Go Outdoors?
JD Sports Fashion plc acquired Go Outdoors in November 2016.
2. How much did JD Sports pay for Go Outdoors?
JD Sports paid £112 million to acquire Go Outdoors.
3. Will Go Outdoors change its name after the acquisition?
No, Go Outdoors will maintain its brand name even after the acquisition.
4. Will there be any changes to the management of Go Outdoors?
Following the acquisition, Go Outdoors will continue to operate and its management structure will remain the same.
5. Will there be any changes to the product offerings at Go Outdoors?
There are no immediate plans to change the product offerings at Go Outdoors following the acquisition.
6. Will Go Outdoors remain a standalone brand?
Yes, Go Outdoors will continue to operate as a standalone brand even after the acquisition.
7. Will there be any changes to the prices at Go Outdoors?
There are no immediate plans to change the pricing strategy at Go Outdoors following the acquisition.
A New Chapter for Go Outdoors
JD Sports Fashion plc officially acquired Go Outdoors in November 2016, and there have been no major changes to the company’s structure, management, brand name, or product offerings since the acquisition. The acquisition has paved the way for Go Outdoors to expand its reach and offerings, while retaining its identity as a stand-alone brand. We hope you found this article helpful. Thanks for reading, and don’t forget to visit our site again for more exciting news and updates.