American Golf, the Warrington-based golf equipment retailer, has exclusively revealed sales uplifts in its operations as part of its ongoing ‘reset’ following the appointment of Nigel Oddy as chief executive last year.
The group had been hit by the pandemic, and then the cost-of-living crisis, followed by the impact of unseasonally bad weather which saw many customers limit their playing time.
Oddy joined International Leisure Group (ILG), owner of the American Golf retail brand, after a six months stint guiding Knowsley-based Matalan through the highwire act of a refinancing and a tasty takeover bid.
Prior to his interim role at Matalan, Oddy was chief executive of New Look, having previously worked in senior roles with The Range, House of Fraser, and Marks and Spencer.
In April this year American Golf issued unaudited figures for the 2023/24 financial year showing a slight increase in turnover, lower pre-tax losses, and a return to an EBITDA surplus.
The unaudited snapshot revealed revenues of £135.8m, up by £300,000, a pre-tax loss of £5.2m, compared with a pre-tax loss of £10.5m the previous year, and pre-exceptional EBITDA of £4.3m, representing a £5.7m turnround.
The business had also maintained its one-third share of the golf retail market.
Now, ahead of the impending release of its audited figures, American Golf has revealed details for the six month period to August this year to TheBusinessDesk.com which showed a £1.4m uplift in like-for-like (LFL) sales, equivalent to a 1.8% increase.
The sales increase is attributed to equipment, clubs and footwear, a clear indication, the company says, that the brand’s aim to become the ultimate one stop destination for everything a golfer requires continues to appeal to its core customers and new customers alike.
The brand is also investing in its 80+ national store portfolio which has seen a 35% LFL sales increase, worth £100,000 at its Thurrock store in the 10 weeks since its refurbishment and reopening, and a 65% LFL sales increase, worth £200,000 at its Norwich site in the five months since its relocation.
The business said these represent “standout” results for its refurbished locations.
It said the industry has endured a challenging start to the season, with wet weather conditions across the UK causing the average number of rounds played per course to drop by eight per cent, with the Midlands and North of England suffering the most (-12% fewer rounds and -13% fewer rounds respectively).
However, despite this, the business managed to increase its LFL market share by 1.4% in the six months to August.
It said it has put additional focus on customer experience, engagement, and loyalty, such as targeted and personalised campaigns, investment in new ‘listening tools’, a new behind-the-rope loyalty programme, and a continued approach to ‘treat every customer as a VIP’. This has driven year-on-year increases in customer frequency (+two per cent) and average spend (+seven per cent).
Nigel Oddy said: “We are pleased with our performance, despite the delayed start to the golf season, caused by the unusually wet weather.
“Although a slow start to the financial year, we have seen strong results in recent months, and I am confident we will continue this growth for the remainder of the year.”
He added: “I am particularly proud of the progress we’ve achieved in developing our retail stores and customer experience – this remains our biggest priority throughout 2024 and beyond. Investing in new technology, bespoke services and maintaining our high standards of customer service will maintain the brand’s fantastic position for the rest of the year.”
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