Sports Direct hikes prices after store closures amid coronavirus crisis
Mike Ashley’s Sports Direct has reportedly hiked the price of some sports equipment by as much as 50 per cent amid the coronavirus crisis.
The retailer has increased the price of exercise equipment such as skipping ropes and weights, according to documents seen by the Press Association.
It comes on the same day Sports Direct was forced to do a U-turn and close all of its stores after the government ordered non-essential retailers to temporarily shut.
The retailer had previously pledged its sports shop chain and Evans Cycles would stay open throughout the three-week lockdown, saying it anticipated a demand for at-home exercise products as gyms have closed.
Today’s price increase comes after the public were advised to stay home as much as possible and only exercise outside of the house once per day.
In a letter to staff Frasers Group finance boss Chris Wootton previously said Sports Direct and Evans Cycles employees should continue going to work.
“There is no one else that has the range of product and range of stories to make this reasonably accessible for the whole population,” Wootton said.
“Against the backdrop of the closure of gyms the demand for these types of products has increased exponentially as the population looks to maintain a healthy lifestyle.”
However, he then said stores would close until they were given the go-ahead to reopen by government.
Last week Frasers Group, which owns Sports Direct and Evans Cycles, issued a profit warning amid “significant disruption” during the crisis.
However the retailer has since announced the suspension of its share buyback saying its previous update had “substantially underplayed the effect of the Covid-19 virus on retail when considering the actions that the government has taken since”.
A spokesperson said: “While some goods have seen an increase in price at Sports Direct, this is not the complete or accurate picture. Not only were these goods originally discounted, but even now they are under the RRP.
“In regard to the rest of the Group facias – including Flannels, House of Fraser and USC – there continues to be a 20 per cent discount on all online sales until mid-April.”