TAF's U.S. franchisees have agreed to switch to a more vertical business model with a clearer single positioning and drive product strategy in a single direction, similar to the strategy utilized by the major U.S. integrated athletic footwear chains. All franchisee product purchases will now be made from TAF USA, which will act as a single U.S. account ordering larger volumes and granting discounts to respective franchisees and pay all vendors having established co-operation agreements with all major brands. The business model may be replicated in other TAF countries later.
The U.S. has been chosen as the testing ground by TAF trademark owner Intersport International Corp. for a new store concept, “Sport with Style.” Pilot stores have opened in Portsmouth and Newport News, VA, with good early results. TAF’s Portugal licensee is expected to open its first door under the new concept before Christmas, ahead of other TAF franchised partners around the globe. The goal is to have 40 doors open within the next five years.
Meanwhile, helped by Intersport’s know-how and global partnerships with major brands, existing TAF stores around the globe generated a 1% drop in same store sales in H1 that was 5% higher in local currencies. TAF CEO Ingmar Kraak hopes the chain’s total retail sales this year will be on par with the $350 million generated in 2013 before growing again in 2015.
American sports such as baseball, basketball and U.S. football and introduce a more style-focused product assortment in Q4 but see no improvement in its U.S. wholesale business until FY15.
