JJB steps up promotions

The group, which last year stayed afloat thanks to a restructuring deal with landlords, described trading conditions since the start of August as volatile and warned sales were likely to fall back without stimulation.

The promotional strategy for the autumn and Christmas period has been backed by the company's main lender Bank of Scotland, which has waived a covenant test due next month so the company can press ahead with its plans.

At the start of its three-year turnaround, JJB said it reduced losses for the six months to August 1 to 24m, from 42.9m a year earlier.

Like-for-like sales from continuing operations rose 14.4 per cent as the company's "Serious About Sport" strategy and improvements in product availability helped deliver evidence of "steady" progress.

However, the increase in same-store sales slowed to 6 per cent between August 30 and September 26 as JJB highlighted the current volatility in trading.

Despite the sales pressure, chief executive Keith Jones said JJB's turnaround potential remained in its own hands.

He added: "As I indicated shortly after my arrival in March this year, the turnaround of JJB Sports will not be a quick fix, but will take up to three years to deliver."

JJB added that the World Cup produced a sales performance in line with the company's expectations, despite England's exit before the quarter-final stage.

Compared with the previous World Cup in 2006, sales were up 13 per cent on a like-for-like basis, it added.