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Never Stronger Intersport Will Be For Sale By The End Of This Year

The world is no longer the place it once was. Looking back a few years, we can confidently say that a lot has changed. Many unfortunate circumstances have impacted people, their quality of life, health, and safety – ultimately leaving their mark on the global market.

If someone had told us in 2018 what shopping would look like, we would probably have waved our hands dismissively and laughed, because before the pandemic, it was hard to believe that numerous science fiction films and books would overnight become reality. Although we have faced, and still face, truly crisis moments for manufacturers and consumers, it is interesting to conclude from the data how much things have changed, how many old consumer habits have been discarded, and how many new ones have been created.

Transition from Physical to Digital

The Slovenian company Intersport is one of many examples of good business adaptation during the pandemic, and also a perfect indicator of the transition of customers from physical to digital shopping. This is a company that has been operating in our region for many years, exclusively in the countries of the former Yugoslavia and Albania. Last year, they achieved 162 million euros in sales across all mentioned countries, and this year, they plan to reach 185 million.

Intersport was taken over in 2016 by one of the largest private equity companies in Europe, Enterprise Investors from Poland. This is a company that invests in, supports, and builds already stable companies into even larger and more successful firms, after which they sell them on the market in their improved form. They have acquired and sold a large number of companies, and currently, they also manage Studenac and Pan-pek in Croatia.

Compared to the current 162 million euros gross for the 2021 business year in the previously mentioned countries, Intersport was achieving annual sales of 80 million euros before the acquisition, had 110 stores compared to the current 143, and the only way to purchase their products was physically.

Today, Customers Are Captured Through a Small Screen

The pandemic has, as previously mentioned, drastically changed consumer habits, and it seems that some of those habits have remained sealed even though there are no longer significant restrictions or rules we must adhere to. There is no fear, and customers have changed forever.

– Once, the store was the main place for sales, meaning we could count on a large space that could impress the customer. Today, customers are captured with a much smaller frame, and that is called a mobile phone screen – said Bartlomiej Behnke, a member of the Management Board and CEO for marketing and digital channels at Intersport for Lider.

That Intersport has succeeded in capturing customers digitally is evidenced by the fact that almost 18 percent of total sales are achieved online. With 8 functional web stores, they have provided customers the opportunity to order at any time of the day, in every country where they operate.

– Covid shocked us quite a bit. At the beginning of the lockdown, there was a calm that lasted a few days, after which orders started coming in like crazy. We knew we had to dedicate more time to digital marketing and sales, and at one point, we had to send people from physical sales locations to package products for delivery because the rush was enormous.

Of course, in the meantime, we stabilized and adapted those processes – commented Andrej Ažbe, the CEO of Intersport for Lider, adding that he believes consumer habits will never be the same again, but it is very important to provide them with a golden mean between online and physical shopping.

– If I need regular or sports t-shirts, pants, and similar products, I will order them from home, and that is a great advantage of online sales. However, if I want to buy a leather jacket or something similar, I will come to the store, feel the product, and smell it before I buy it – Behnke agreed.

After They Bring the Company in Order, They Sell It

Intersport and Enterprise Investors currently employ 1,354 employees across all countries combined, and by the end of 2022, their plan is to bring that number to 1,413 and achieve 185 million euros in gross sales. Michal Kedzia, a partner at Enterprise Investors responsible for investments in the Adria region, also noted that their plan is to sell Intersport by the end of this year and added that he is extremely proud of the successful transformation they started in 2016 when they acquired the company.

– We look forward to the development of Croatian companies, and I think it will be even more favorable in the coming days. Croatia is entering the eurozone next year, which is great news because your market will become even more attractive to financial investors – concluded Kedzia.