American Golf expands as sales hit record

SPECIALIST retailer American Golf is planning to open 30 new stores over the next three years, a move which follows record annual sales of £133m.

The private equity-owned, Warrington-based group, now has 100 shops, all employing a PGA Professional golfer, is also planning to boost its e-commerce offering.

The 100th store, which is in Gateshead, is the first in a new format which offers customers improved brand choice, wider product ranges, expert advice and better club fitting.

The group said the record sales performance in the year to the end of January was achieved against a challenging retail backdrop and  adverse weather conditions during the year, which saw 13% less rounds played.

Despite such issues, American Golf’s share of the UK’s retail golf market increased to 28%, meaning its is more than five times bigger than its nearest competitor.   

The expansion drive, which will create around 250 jobs, will see 10 storews opened during the first quarter. This, alongside further significant investment in its UK and European e-commerce business – which currently delivers around 12% of total sales – is expected to increase revenue by 40%.

Under its multi-channel strategy, new innovations planned in the year ahead include the introduction of iPad capability, which will enable all stores to sell customers any product  and have it in-store or at the customer’s home by noon the next day.

The group will also be introducing a new ladies “store within a store” concept.

Chief executive Kevin Styles, who joined the business last summer, said: “We delivered record sales and, more importantly, made some major improvements and investments to get the platform right for our next growth phase.  

“This included strengthening our e-commerce business, developing the best golf retail store format in Europe, further strengthening our merchandising & range authority and investing in our people.

“What didn’t change was our focus on helping customers improve their performance, by providing them with the best advice, expert fitting and the kit that’s right for their game.”
 
Chief financial officer Stuart Owens, added: “We occupy a position of real strength in the sector as Europe’s leading specialist multi-channel golf retailer in a global and growing sport.

Combined with a solid financial platform and an unrivalled proposition, we see enormous potential to continue growing the business and consolidate our position as the dominant European leader in golf retail.”

During the year, the company’s best performing stores were Braidhills in Edinburgh, Clydebank in Glasgow and New Malden in Surrey.

American Golf  was founded in the late 1970s by brothers Howard and Robert Bilton with a single store in Ashton in Makerfield.  It is now owned by Sun European Partners which bought the business from LDC in December 2011.