Fox-Wizel Ltd. (TASE: FOX) is on its way to founding a new Israeli sport chain, sources inform "Globes." Fox, controlled by Harel Wizel, will develop a nationwide multi-brand chain named Just Sport for professional sports brands.
The new chain will be owned by Fox subsidiary Retailers, managed by Dubi Schneidman, which the group developed over the past year. The chain's concept will be based on global sports chains, and will include sports products for both athletes and amateur people getting exercise. This will enable the group to enter a new sector and compete with veteran players such as Mega Sport, and even French company Decathlon, which as of now is marketing only its own discounted brand in Israel.
The sources add that the new chain's first store is scheduled to open in two months in Rishon Lezion in the G mall, next to Cinema City. It will contain one floor for men and another for women and children with 800 square meters. The new store will offer six categories: running, training, soccer, basketball, lifestyle, and surfing. It is believed that four more stores will open this year.
The Fox group's regular activity is in fashion, but over time, it has diversified its portfolio. It has expanded in recent years, mostly by acquiring companies such as Shilav and acquiring franchises for international brands like Urban Outsiders.
With the decline in fashion proceeds, however, Fox decided several years ago to include sports activity, which has been growing, both globally and in Israel, in its portfolio. The number of people engaging in sports is growing, and sports clothes are making their way into people's daily wardrobe.
This is the first time since the Fox fashion brand was established that the group is independently developing a chain of physical stores. Fox later expanded into home fashions under the Fox Home brand name. Most of the chains that Fox operates are franchises of international companies or acquisitions by Fox of Israeli companies over the years. Two and a half years ago, the Fox group also launched Terminal X, an online commercial platform.
Fox already operates two sports chains in Israel: Foot Locker, an international chain of sports shoes stores focusing on fashion items (through a franchise) that markets a variety of sports shoes brands, and the Nike Israel chain, which sells the brand's products, including items for both people getting exercise and athletes.
Fox is now seeking to enter a new field - professional sports - through its own multi-brand chain. In recent years, with fashion proceeds waning, department stores have also greatly expanded their space for selling sports clothes.
Competition in the local market is currently divided into a number of segments: brand stores such as Nike, Adidas, Reebok, Vans, Skechers, and Columbia. Looking at brand sales (retail and wholesale), Nike is the leading sports brand, both worldwide and in Israel, with a 40% market share, followed by Adidas with 27%, according to market estimates.
Published by Globes [online], Israel business news - en.globes.co.il - on January 21, 2020
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