Otto Group sells Sportscheck
Galeria Karstadt Kaufhof has acquired multichannel retailer Sportscheck from the Otto Group. The Otto Group decided to sell its daughter company, because it thinks this gives Sportscheck the best possible chance of long-term business viability.
The Otto Group says it has considered all options very carefully, but that selling the company was the best choice. The Otto Group and Galeria Karstadt Kaufhof have signed an agreement, but the deal still needs to be approved by the German Federal Cartel Office.
Part of omnichannel retail portfolio
Galeria Karstadt Kaufhof wants to integrate Sportscheck in its omnichannel retail portfolio, which will lead to one of the biggest players in the sports good retail sector in Germany. Sportscheck was part of Otto Group’s portfolio since 1991, but has struggled to be profitable for several years.
17 physical stores and an online store
Sportscheck operates an online store as well as 17 physical stores across Germany. But with the fierce competition of pure online and hard-discount providers, the company has struggled to position itself successfully and sustainably.
Sportscheck didn’t fulfil criteria to invest further
Further investing in Sportscheck would contradict the group’s focused growth strategy, the Otto Group explains. “This foresees targeted investment in market-relevant business models and Group companies that can be relied on to generate high growth and outstanding performance. In its current form it is clear that Sportscheck does not fulfil these criteria.”