Sporting goods retailer Forzani Group Ltd. says it is abandoning a "hard-sell mentality" as consumers become less willing to part with their money in an economic downturn.
Salespeople at SportChek, one of several chains operated by the Calgary-based company, will no longer be paid on commission and will instead focus on the "customer experience," chief executive officer Bob Sartor told an investor conference call yesterday.
"And by that I mean cleaner, better-merchandised stores and helping the customer," he said.
Forzani said Friday that its third-quarter profit was nearly cut in half from last year due to a one-time tax charge.
Same-store sales at corporate locations were down 0.2 per cent, while franchise stores reported an 11.5-per-cent increase in comparable-store sales. Mr. Sartor said Forzani's inventory is in "absolutely phenomenal shape" and its balance sheet is "rock solid."
"We'll continue to keep our inventories very lean as we are, as a management team, quite wary about the depth and the extent of this recession and its impact on consumer spending," he said.
"We think it's the prudent thing to do because we're not sure we've seen the low of lows from a Canadian consumer perspective yet. Certainly in the States it's quite dire in our sector."
Investors have been vocal about what they think Forzani should do with its cash, Mr. Sartor said. "Our view is until such time as we have a real good handle on how deep this recession may be and how skittish the consumer may be in 2009, we have decided to keep our powder dry, at least for this quarter.
FORZANI GROUP (FGL)
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