New boss Michael Murray warns of price rises

[geemong]

New boss Michael Murray warns of price rises





The new boss of Sports Direct has warned that the retailer will probably have to put up prices as it faces costs that are "going through the roof".

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Michael Murray has taken over from Mike Ashley - his future father-in-law - as chief executive of Frasers Group.

But in his first interview in the job he told the BBC Mr Ashley was "not pulling the strings".

He also insisted that the High Street is not dead, with plans to open up to 10 new flagship stores across the UK.

At the age of 32, Mr Murray has become one of the youngest chief executives among FTSE 250 companies after a meteoric rise to the top of one of the UK's biggest retailers.

But he faces a particularly challenging time with rising costs and a squeeze on household incomes.

Although Sports Direct stores pride themselves on countless deals and offers, Mr Murray admitted prices will probably rise.

"In terms of the pricing of product, we are very much at the mercy of our brand partners," he said.

"They decide the price they want to sell the goods for and we will increase the prices as and when the brands ask us or recommend us to do so."

Speaking to the BBC ahead of Sports Direct opening its new Birmingham store on Friday, Mr Murray said he believed Britain's High Streets were not "dead", but said they would be "different".

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