GO Outdoors fills gap with launch of activity site

John Graham, managing director of the Sheffield-based firm, said he decided to create the GO Activities site after spending hours on the internet trying to book holiday activities for his daughter and her friend.

The website, which took about 10 months to create and went live last week, includes 13,000 activities ranging from guided walks and photography classes to zorbing and bungee jumping.

He said: “I took my daughter and her friend to the Lakes and decided to give them a different activity to do every day.

“By the time I’d set it all up through Google, I thought there’s got to be an easier way to do this.”

There is no charge to use the website and customers pay the same as they would if they booked directly with the providers themselves. GO Outdoors receives a small commission from the providers.

Mr Graham said: “We only receive a small commission but it will hopefully create more customers for our stores too. I’m all about trying to get people out into the countryside and this makes it an easy first step for people.”

GO Outdoors posted a 21 per cent rise in pre-tax profit last year despite a “challenging” retail market and increasing competition.

Pre-tax profit reached £5.2m in the year to January 30, 2011 as turnover rose by 53 per cent to £115.2m.

Mr Graham said: “There is more competition on price at the moment because people are finding it tough and cutting prices.

“This is happening more than it used to. It’s great from customers’ point of view but it makes things harder for us.”

The company, which is opening an average of 10 new stores a year, has 35 stores across the UK, including Sheffield, York, Pudsey in Leeds, and Wakefield.

It is currently creating about 600 new jobs a year through new store openings and has 1,600 staff.

“Trade is more challenging but finding new stores is good because there is more choice,” said Mr Graham.

The company secured investment from 3i in April after the private equity firm paid £28m for a minority stake in the business.

It also agreed a £30m refinancing package with Lloyds Banking Group.

The company’s performance enabled directors to approve an interim dividend of £1m – up from £840,000 in 2010 – and a final dividend of £369,000. A further £6.2m dividend was paid after the year-end when the business was acquired by newly-formed GO Outdoors Topco. This dividend was primarily related to a sale and leaseback of its Coventry store, which netted £5.3m.

Mr Graham said he decided to sell the Coventry store to free up further cash for expansion.

GO Outdoors sells clothes and equipment for a range of activities, including walking, camping, cycling, horse riding, running and fishing.

Brands include Berghaus and North Face as well as own-label products, which will account for around 25 per cent of its sales in 2011.

Looking to 2012, Mr Graham said: “We are going to open 10 more stores and we will carry on with the same range of products – we won’t be introducing any new categories.

“Trading conditions will be a challenge for us as they will for everyone but if you’re a consumer, there’s never been a better time to shop.”

GO Outdoors was founded as the Camping & Caravanning Centre (CCC) more than 40 years ago with a single store in Sheffield.

The company featured in the inaugural Yorkshire Post Fastest 50 list of fast-growing companies published in March.

Going for growth

GO Outdoors was founded as the Camping & Caravanning Centre (CCC) more than 40 years ago with a single store in Sheffield.

In 1998, it was the subject of a buy-in management buyout led by managing director John Graham and chairman Paul Caplan.

Its expansion began in earnest in 2008 when the company, which had nine stores, secured an £18m banking deal.

In 2009, the company grew by 80 per cent to a £75m turnover, with 22 superstores across the UK and 1,100 staff.

It now has 35 stores and 1,600 staff with plans to open another 10 stores in 2012, creating 600 jobs.

If all goes to plan, the company, which stocks about 200 brands, including Berghaus and North Face, aims to have 100 stores across the UK in the next four years.