Sports retailers to pay higher prices for long socks
Sports retailing giant Sports Direct is set to pay the equivalent of $13,000 per person per year for long sports socks as part of a $10 billion deal announced today by the Australian government.
The deal with Australia’s largest sporting goods company, Sports Direct, comes after a raft of high-profile moves by the retailer, which has already spent millions to boost its retail operations.
It has been a decade since Sports Direct began selling its long socks, but the deal with the retailer will see the retailer offer its socks at a premium price point for the first time.
The retailer will also offer the socks for sale online in the US and New Zealand and at major retailers like Walmart, Amazon, Best Buy and Target.
A Sports Direct spokesman told The Australian Financial Review the deal is worth around $20 million a year, including $4 million per annum in payroll tax payments, which would be paid in full after five years.
The company, which is Australia’s biggest sports retailer, is the latest in a string of big-name retailers to offer their long socks for free.
In July, sports retailer Sainsbury’s announced a similar deal, which will see customers pay a minimum of $4 per sock for the same service.
Other retailers have been doing their fair share of foot-shaking too, with Boots and Tesco both recently offering their long-sleeved socks for $2.50, which comes to around $7 per sock.
Sports Direct said it had been working on the deal for years, with its long-time supplier, Australian Fibre, being involved in the process.
“The key to the deal was the long socks.
We were very fortunate to have our long socks on our premises for so many years,” Sports Direct chief executive Peter Wright said in a statement.”
In our dealings with the Australian Government, we have seen the value of long socks and how it can make a real difference to our customers.”
He said the Australian public were “overwhelmed” by the service, and that Sports Direct had been able to deliver the socks at competitive prices.
“These socks are ideal for those who are trying to get fit or want a pair for a special occasion,” Mr Wright said.
“They are also the perfect option for those with limited mobility and mobility issues, who want to enjoy the experience of sport with confidence.”
Sports Direct has been selling its socks online since the mid-2000s, with the sale of its Australian Fibres stock recently announced as a strategic step to boost the company’s growth.
Mr Wright said the deal would help boost the retailer’s customer base, and ensure that the long-wear sock market was not just for the rich and famous.
“It is about being a true competitor to the super rich, and to people who have got a vested interest in seeing the sport they love grow,” Mr Duffy said.
“We’re also working to develop an online marketplace where people can shop, buy, trade and earn sports socks for their own personal use.”