Danish sports retail chain Sportmaster is undergoing a major transformation, leading to further store closures. Since its acquisition by Frasers Group, the company has reduced its physical presence from 75 stores to just 25 in three years. Now, five more locations—Aars, Skive, Billund, Holstebro, and Østerbro (Copenhagen)—will shut down by June.
According to Dorthe Block, country manager for Sportmaster, these closures are part of a strategic realignment. “We are making a clean cut to speed things up and out of respect for the employees as we approach the summer period,” she told.
After these closures, Sportmaster will retain 19 stores, along with six Sports World-branded outlets.
Fewer, bigger, and better stores
The decision to close these stores is not based on performance but rather on Sportmaster’s shift towards fewer, larger, and better-equipped stores under the Sports World brand.
This restructuring follows years of financial struggles, with Sportmaster reporting a cumulative loss of DKK 1.1 billion (€147.8 million) over the past five years. The company aims to regain profitability by optimizing its retail strategy.
One consequence of this approach is a significant reduction in Sportmaster’s presence in Jutland, where many stores have now shut. However, Block has expressed hopes of re-entering this market in the future.
Frasers Group’s expansion and restructuring
Sportmaster’s transformation is part of a wider restructuring plan by Frasers Group, which owns Sports Direct, House of Fraser, and other retail brands. The UK-based group has been aggressively optimizing its operations.
In July 2024, Frasers Group restructured its digital division, putting 45 jobs at risk as part of a relocation to its Shirebrook, England headquarters. In April 2024, the company also expanded in the Netherlands by acquiring Twin Sport Holding B.V., a leading omnichannel sports retailer.
Retail store closures: a global trend
Sportmaster’s downsizing reflects a broader global trend in retail. With the rise of e-commerce, many companies are scaling back their physical stores.
In the United States, 2024 saw 7,325 store closures versus 5,970 openings, resulting in a net loss of 1,355 stores. Forecasts for 2025 predict 15,000 store closures, while only 5,800 new stores are expected to open.
Retailers worldwide, including Sportmaster, are adjusting to new consumer behaviors by focusing on strategic store locations rather than maintaining extensive networks. Whether this approach will lead to long-term success remains to be seen.
