PROSPECTUS 2019 · Exclusive Brands 20 Website and E-Commerce 21 Go to Market ... We have six...

INTERSPORT PROSPECTUS 2018 1

PROSPECTUS2019

Welcome from the CEO 1

Our Vision 2

Our Philosophy 2

Our Promise 3

Our Values 5

INTERSPORT INTERNATIONAL CORPORATION - IIC

IIC – History 6

IIC – Global Business Model 7

IAU OVERVIEW

Our Concept, Our Differences and Our People 10

Company Structure 10

The Board 11

Member’s Product Selection Committees 11

Personnel 11

Current Footprint & Store Location 12

Store Layout and Execution 13

Mandatory elements when converting to INTERSPORT 13

INTERSPORT BENEFITS

Trading Terms 14

Global Brand Partners 15

Local Brand Partners 15

Marketing Support 15

Marketing Guidelines 16

Campaign Support 17

Welcome Pack 18

Head Office Support 19

IIC Support 19

Exclusive Products 19

Exclusive Brands 20

Website and E-Commerce 21

Go to Market Conferences 22

Retail Express 22

Franchise Connect 22

Store Concept 22

Staff training 23

Community Engagement Subsidy 23

Various Discounted Merchant Rates 23

STEPS TO JOINING INTERSPORT AUSTRALIA

10 Steps to Joining 25

CONTACT DETAILS

CONTENTS

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WELCOME FROM THE CEO


Firstly, thank you for your interest in wanting to know more about joining INTERSPORT, one of the world’s leading sports retailers.Along with many of our members, I too have a long history in sports retail and there’s no denying that recent years has seen many changes and challenges in the traditional sports retailing model. As the new retail paradigm continues to evolve there will be even more changes and challenges ahead of us.

It is with that in mind that 5 years ago we identified this “once in a lifetime opportunity” with INTERSPORT and moved quickly to secure the Australian licence.

Globally, INTERSPORT International Corporation (IIC) grew from grass roots, amalgamating independent sports buying groups firstly in Europe and now globally in 44 countries.

Fundamentally that grass roots DNA remains the core of the INTERSPORT business model which recognises and celebrates the importance of the individual’s local knowledge and sports specialist retail skills.

At the same time, we collectively, both at a local and global level, also benefit from the support and advantages that only a large international brand can provide.

With 36 stores rebadging and aligning to INTERSPORT on 1st July 2014, INTERSPORT Australia (IAU) now boasts in excess of 65 stores and is recognised as one of the top tier major retail brands in the Australian Sporting Goods Industry.

I invite you to view this prospectus as an opportunity and as a starting point to know a little bit more about INTERSPORT Australia. I personally look forward to hearing from you should you wish to begin the process to discuss in more detail the key business parameters associated with this unique, retailer focused, business model.

Kind Regards,

Kevin O’HanlonCEO

Online Industry Awards 2018

Finalist “Best In-store Initiative”2018 Australia Retail Association Awards

Finalist “Store Fit-out Of The Year”

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INTERSPORT’s global vision is to become the world’s most dynamic, well-known and profitable sports retail brand.

Over the last few decades, people and their attitudes to sport have changed – and INTERSPORT is changing with them.

INTERSPORT’s brand message “Sport to the People” expresses simply and emotionally the essence of INTERSPORT. The more you enjoy doing something, the more you do it. We help you choose the equipment that will give you maximum enjoyment.

OUR PHILOSOPHY

OUR VISION


Everyday our staff around Australia and the world make an effort to make this vision become reality. We stand for expert authority, multi-sports, sports authenticity and best price to quality ratio. We want to provide specialist advice and professional guidance whilst also offering our customers the best value and competence with all our services and products.

OUR PROMISE


OUR VALUESWe have six internal values that align with the six cornerstones of our organisation and guide our behaviour. By staying true to these values, we deliver SPORT TO THE PEOPLE.

• QUALITY • SPORT FOCUS• CUSTOMER ORIENTATION• INSIGHT• PROFESSIONALISM• HEALTHY LIFESTYLE

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INTERSPORT INTERNATIONAL CORPORATION - IIC

IIC – HISTORY

In 1968, 10 successful national buying organisations came together with an ultimate goal in mind: to create an international sporting goods operation that gives customers the fullest benefits, confidence in retailers and complete product satisfaction. That first meeting in Paris gave life to INTERSPORT and a new world of sport retail intelligence began.

INTERSPORT has the worldwide leading position in the sporting goods retail market with over 5,500 stores across 44 countries. In 2012, INTERSPORT International purchased The Athlete’s Foot which means we have a combined coverage across 65 countries and a retail turnover in excess of €14 billion.

INTERSPORT is committed to providing customers with expert advice, outstanding service, and the best products made by the best brands. With a passion for sport, the local community and with our customers at the heart of everything we do, we are truly committed to bringing Sport to the People.


IIC – GLOBAL BUSINESS MODEL

INTERSPORT Australia enjoys a close working relationship with INTERSPORT International, grounded in the INTERSPORT brand values of honesty, trust and mutual respect. We are philosophically aligned with global in our growth and digital expansion.

Our CEO and Retail Product Manager attend INTERSPORT global conferences twice a year, usually held in Europe. This not only provides them with a full update on the direction of INTERSPORT globally, it also allows them the opportunity to visit other INTERSPORT stores and competitor retail stores throughout Europe. At these conferences they also have the opportunity to receive presentations and product demonstrations from the world’s best brands and are able to liaise with senior brand executives, IIC executives and representatives from other INTERSPORT countries, sharing best practice, ideas, trends, forecasts and product specifics.

Additionally, our Head Office staff based in Melbourne are in constant contact with INTERSPORT International Head Office staff based in Switzerland. We regularly receive marketing material, resources, support, direction, advice, clarification, reports, copies of presentations from executives and brands and much more from IIC, allowing INTERSPORT Australia to ‘punch above our weight’ in the domestic market.

KEY SUCCESSFACTORS OF INTERSPORT

+ 40 years of sportinggoods retail experience

Strong sportsretail brand

INTERSPORTretail concept

Internationalmarketing campaigns

House of Brands

Sportssponsoring

Exclusivebrands

Readiness formarket adaptation

Strong relationship withworld’s leading brands

Internationalnetwork

Beneficial termsand conditions

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INTERSPORT44 Countries

The Athlete’s Foot28 Countries

COMBINED | 65 Countries with 5,800 stores and over 14 billion euro retail sales


Founding Countries

Other Countries

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IAU OVERVIEW

OUR CONCEPT, OUR DIFFERENCES AND OUR PEOPLE

The fundamental difference to our competitors, in this highly competitive and changing retail marketplace we now find ourselves, is based around one of the foundation principles of INTERSPORT globally. That being that we accept, acknowledge, welcome and celebrate the diversity of business models within our group and respect that the individual INTERSPORT business owner is a key success factor in our future growth and development plans.

COMPANY STRUCTURE

On the 1st July, 2014, 36 Independent Sports stores rebranded to become INTERSPORT Australia. With this number now being well over 65 stores, our store network is made up of well-known local businesses, most with a longstanding history in their respective communities. By teaming with one of the largest sporting retailers in the world, we have combined the knowledge and expertise of our local staff with the strength and buying power of a global brand, to ensure that we are bringing Sport to the People.

INTERSPORTAustralia

Board CEO & Head Office Staff

Product Committees

Members

Store


THE BOARD

The Board comprises a Chairman, up to 6 Directors and the CEO.

The Chairman and Directors must be Members/Store owners. Positions are open and elected each AGM.

MEMBER’S PRODUCT SELECTION COMMITTEES

A critical part of the buying structure and marketing implementation is to have input and feedback from members.

Members have the opportunity to nominate for product selection and marketing committees. These committees are set up to provide recommendations on range selections for future seasons as well as reviewing marketing programs.

Current committees:

• Footwear & Apparel

• Hardware

• Marketing

These committees preview ranges in the lead up to group buying conferences.

PERSONNEL

The success of the group relies heavily on the execution capabilities of the Head Office team located in Gardenvale, Melbourne. Our Head Office team have retail backgrounds within the sports industry together with complementary management skills in all key areas of business management and operations.

The positions are:

• CEO

• General Manager

• Finance and Administration Manager

• Retail Product Manager

• Marketing Coordinator

• Data Analyst

• Product Data Coordinator

• Accounts Assistant

• Customer Service and Office Administrator

“ Head office comprises a team of highly talented people working for the members to achieve the best outcome for their store. All members are encouraged to actively participate in range selections”

Terry Domney, INTERSPORT Warrnambool

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CURRENT FOOTPRINT & STORE LOCATION

Our stores are located in shopping centres, shopping outlets, shopping strips and as stand alones. As at July 2019, we have 77 stores across every state in Australia.


STORE LAYOUT AND EXECUTION

Brand consistency is critical to retail success, therefore INTERSPORT has developed a clear and consistent physical store layout and brand concept positioning, which we see as a key to connecting with the consumer of the future.

This design is new and fresh and focuses on creating category zones within each store to enhance the customer experience and provide INTERSPORT with a unique DNA which provides the opportunity for store staff to connect, engage and interact with the consumer.

Strategy:

• A uniform and sharp brand profile shall be ensured

• Attract customers with exciting and modern stores

• Focus on creating category zones in each store

INTERSPORT Australia also has a ‘Store Concept Guide’ available upon request for stores looking to do a major refit and achieve ‘Concept Store’ status.

MANDATORY ELEMENTS WHEN CONVERTING TO INTERSPORT

When converting to an INTERSPORT store, there are certain mandatory elements which must be met during the changeover process, to ensure consistency across the group and meet both local and international guidelines. These include:

• Store Fasica

• Counter Update

• INTERSPORT Category Signage

• INTERSPORT Uniforms

• Where practical, adopt the INTERSPORT colour pallet throughout your store

Store Fascia

Category Signage

Colour Pallet

Counter

Staff Uniforms

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INTERSPORT BENEFITS

TRADING TERMS

One of the key benefits of being a member of INTERSPORT is to provide beneficial terms for members from both Global and Local Strategic Brand Partners. INTERSPORT Australia currently has formal Trading Terms with over 50 Brand Partners ensuring purchasing benefits to all our members.

Our Management Team regularly review trading terms with both our Global and Local Strategic Brand Partners to ensure members receive not only relevant but competitive Trading Terms.

Being a leading sporting retailer globally ensures we are in a position to utilise the strengths of our international buying power.

“ The benefits of INTERSPORT for us are the obvious margin benefits, marketing, exclusives and specials, but also the fact we can offer so much more to our customers now”

Mark O’Donnell, INTERSPORT Mildura


GLOBAL BRAND PARTNERS

Benefits of Global Strategic Brand partnerships include:

• Improved local trading terms and access to global deals

• Access to global INTERSPORT exclusive products and marketing campaigns

• Brand investment into INTERSPORT campaigns to drive profitable sell-thru

• Sharing best practice, information and the latest initiatives being used in collaboration between INTERSPORT and our Global Brand Partners

Some of our many Global Brand Partners include:

• Nike

• Adidas

• ASICS

• Puma

• New Balance

LOCAL BRAND PARTNERS

Benefits of Local Strategic Brand partnerships include:

• Improved local trading terms and local deals

• Brand investment into INTERSPORT campaigns to drive profitable sell-thru

• FOB ordering, allowing members to access big-ticket items at a reduced price through our 3PL network

Some of our many Local Brand Partners include:

• Vuly

• JHT

• Gray-Nicolls

• GPI

• Sherrin

• Spalding

• Champion

• Russell Athletic

MARKETING SUPPORT

A brand encapsulates everything an organisation does. This is why building a strong INTERSPORT brand at every consumer touch point is critical to the success of the business.

It should be at the heart of our stores, our people and our day to day operations.

INTERSPORT has a long and proud brand history globally. We have a set of guidelines and we will draw on this experience to ensure we support any new stores as they transition to become an INTERSPORT store.

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MARKETING GUIDELINES

A strong brand needs a strong, distinctive and consistent corporate design. A set of International marketing guidelines have been developed to illustrate how the brand and the company is presented in each marketplace. These guides include information on how the logo must be treated, brand colours, tone of voice and image and video styles.

Adhering to these guidelines will ensure a clear and distinct visual identity that will create a clear point of difference to our competitors

“ The difference between INTERSPORT and other groups, apart from its sheer size, is the personal approach from retail minded executives and staff. This combined with their knowledge and experience provides superior buying power and marketing acumen across the globe”

Damian De Grandi, INTERSPORT De Grandi


CAMPAIGN SUPPORT

To leverage partnerships with key brand suppliers, exclusive marketing campaigns will be on offer throughout the year to support sell through. A suite of campaign tools are developed annually including ‘above the line’ traffic driving initiatives right through to ‘below the line’ tools such as catalogues, window displays and other in-store elements. Social media and digital assets are also made available for key campaigns. Campaigns are a mixture of nationally produced and globally funded campaigns, optimizing global product releases alongside national opportunities.

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WELCOME PACK

All new stores will receive a collection of products aimed to assist with your store re-branding and ultimately aide your transition to INTERSPORT. The ‘Welcome Pack’ is customisable so we will work with you to ensure what you get is what you need.

Some of the items that are available to new stores joining INTERSPORT include:

• Uniforms

• Category Signage

• Plastic Bags

• Hangers

• INTERSPORT Branded Products

• Business Cards

• Time in store from Head Office staff


HEAD OFFICE SUPPORT

The INTERSPORT Head Office has been set up to provide ongoing support to our members. We are focused on creating a culture that will ensure that members are working together to achieve the best results for themselves as well as the wider group. Head Office is focused on fostering a strong network of likeminded retailers who can drive sales, learn from each other and continue to grow.

Head Office also provides support in the following areas:

• Nationally managed website and Online store

• Centrally managed online Members Hub, providing key tools and information from brands and Head Office

• Regular industry information updates

• EDM templates and support

• Customer service

• Social Media support

• Retail Express barcode uploads and support

• Email set up and support

IIC SUPPORT

The IIC team provide support across several layers of the business.

Globally there are key products and exclusive marketing campaigns that are negotiated with the brands on our behalf. These campaigns will be provided over and above the generic support from the brands which is widely available domestically.

We are fortunate to have access to tools and guidelines via the global business that can provide you with advice and suggestions with regards to store layouts, fit outs, fixtures and systems.

EXCLUSIVE PRODUCTS

Through our Global Strategic Brand Partners we are able to access exclusive products which include footwear, football, apparel and accessory options in a range of models and colours. These include products from brands such as adidas, Asics, New Balance, Nike and PUMA.

These styles not only differentiate INTERSPORT stores from the competition, they can also offer additional margin when engineered for a volume program. Additionally, INTERSPORT Australia has access to exclusive marketing content which we receive from these partners courtesy of our international relationships.

We are also continuously working with our local partners to develop exclusive product and INTERSPORT branded products for sale, community events and promotions.

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EXCLUSIVE BRANDS

INTERSPORT Australia has access to the INTERSPORT Global suite of Exclusive Brands including McKINLEY, Pro-Touch & Energetics.

Currently in Australia we are ranging McKINLEY Footwear, Apparel & Accessories. This brand has over 30 years of heritage and stands for functional outdoor products, allowing the consumer to explore nature and experience the great outdoors. Whilst we are slowly growing our McKinley range each season, you can learn more about the brand and view the entire range by visiting www.mckinley.eu

These ranges offer members very competitive margins and are exclusive to INTERSPORT stores.


WEBSITE AND E-COMMERCE

INTERSPORT Australia has a world-class website with e-commerce functionality following the latest global INTERSPORT guidelines, while localising elements to benefit members:

• Store landing pages – these provide individually store details such as opening hours, address, short blurb etc

• Find in Store functionality – allows customers to see if a specific product is currently available in stores near them

• Store-based fulfillment – a unique model of distribution which provides all stores the opportunity to be fulfillers for online purchases in 2019. Please note that certain criteria needs to be met by each store in order to included in this program.

Store landing pages Find in Store functionality

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GO TO MARKET CONFERENCES

Twice a year INTERSPORT Australia organises Go to Market conferences in Melbourne which provide Members a ‘One-Stop-Shop’ for seasonal updates from brands, Head Office presentations including an update from our Global Conference, exclusive pricing and offers, ability to touch and feel samples, place orders, information on Focus Ranges, Frame Deals and more. The Autumn/Winter conference usually attracts 30+ brands spread over three days, allowing Members to fully cover off all their suppliers in this time.

RETAIL EXPRESS

The majority of INTERSPORT stores now use Retail Express point of sale system in store. The main benefits of using Retail Express:

• INTERSPORT head office supplies brand product uploads for over 60 brands (incl. Nike, Asics, Adidas) saving significant time and cost for our members

• Product uploads enables quick turn-around from product delivery to being floor ready to sell

• Product uploads enable link to “Find in Store” on website and opportunity to be an e-commerce fulfiller in 2019

• User-friendly front-end point of sale

FRANCHISE CONNECT

Franchise Connect is a program connected to Retail Express which aggregates sales data at a group level. This group level data is shared with members, product committees and brands to enable better buying decisions in the aim to deliver improved finished margins.

STORE CONCEPT

INTERSPORT Australia’s Store Concept began rolling out in 2016 with now over 20 stores having completed stores to full concept status. Concept stores have varied from brand new stores to adapting existing stores. INTERSPORT works with a local design, fixture and fitting company who will work one on one with you to design your store to your desired level and budget.


STAFF TRAINING

INTERSPORT Australia recently teamed up with an industry leading Visual Merchandising consultant to develop a bespoke Visual Merchandising Training Manual and 7 training videos. When utilised together these tools provide our Members a fantastic Staff Training module for both new and existing staff. These tools are custom made for INTERSPORT Australia and will greatly increase the knowledge of our staff around the country, adding to our consistency across the group and delivering an uplift in sales.

Next up on the bespoke Staff Training programme will be Footwear Fitting and Sales, closely followed by Customer Service. Staff Training is an area we are investing more and more time into, so that you don’t have to.

COMMUNITY ENGAGEMENT SUBSIDY

INTERSPORT has always had a focus on our local communities as we strive to become a fundamental part of our local areas. To assist with this, we offer all our members subsidies to promote their business via Local Community Engagement.

VARIOUS DISCOUNTED MERCHANT RATES

We work closely with various banks and the ARA to offer discounted group rates to our members. We recently negotiated a deal with both the Commonwealth Bank and American Express to help our members achieve better rates. We also work with our suppliers to get bulk rates in areas such as insurance and printing.

“ Joining one of the biggest sports retail groups in the world, and currently the most respected independent group in Australia, gives us significant advantages. We also have an excellent management team forever focused on improving our sales and profitability. The future looks bright”

Mark Hanlon, INTERSPORT Port Pirie and Port Augusta


1. Evaluation Information Submitted to Head Office. If successful:

2. Discussion with our CEO, Kevin O’Hanlon

3. Confidentiality Agreement to be signed

4. Due Diligence and Financial Evaluation

5. Nearest INTERSPORT store notified

6. Board Members Pre-Approval

7. Members Vote

8. Confirm Commencement Date

9. Confirmation of Successful Application

10. Documentation to be completed and Franchise Fee payable

STEPS TO JOINING INTERSPORT AUSTRALIA

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CONTACT DETAILS

Once again, thank you for your interest in INTERSPORT Australia. We hope this Prospectus has been informative and answered many of your questions, however if you’d like to know more please contact our Head Office at any time.

Daniel [email protected] 8560 4677

INTERSPORT Australia121 Gardenvale Road, Gardenvale, VIC 3185

www.intersport.com.au

PROSPECTUS 2019 · Exclusive Brands 20 Website and E-Commerce 21 Go to Market ... We have six...

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