Alistair Houghton speaks to NICK WOOD, chief executive of American Golf

AS THEY battle it out on the world’s golf courses for the world number one slot, it’s unlikely Lee Westwood and Luke Donald give much thought to the Warrington business world.

But their battle for supremacy has given a timely boost to one of that town’s best-known brands – American Golf.

This week, the Warrington-based specialist golfing retailer announced that sales for the year to January 31 stood at £86.6m – up 20% on the previous year.

Much of that growth came through store openings, as well as the acquisition of a golf website in March.

But Nick Wood, American Golf’s chief executive, says that the strong recent performance of British and European golfers on the PGA tour has helped stoke more interest in the sport – and therefore in his business.

“Europe has got six of the top 10 golfers,” he says. “When you have a debate every week as to whether Lee Westwood and Luke Donald is the world number one, it hits the news more than when Tiger Woods was at the top for eight years.”

Leicester-born Wood went to Cambridge University before joining private equity firm 3i, where he soon gained hands-on experience managing its investments.

In 1997, he took that experience to the Dixons Group, where he spent 10 years. He ran businesses including the Dixons chain of high street stores and mobile phone retailer The Link.

But, in 2008, his career took a different turn when he was asked to join American Golf.

The company was founded by Robert and Howard Bilton in the 1970s. In 2004, it underwent a management buyout backed by private equity firm LDC.

“I was called by one of the private equity team looking after the investment in 2008,” says Wood. “They were looking to take the business to the next level.

“It was still in that transition from being an entrepreneurial business to being a professional retail business. That’s what I’ve been working on.

“We already had good knowledge of golf. Now I want to make this company a better retailer.”

Wood joined American Golf as chairman, becoming chief executive later that year.

Sales of golf equipment did dip in the recession, but Wood says American Golf weathered the downturn better than its competitors.

“We probably saw a 10% fall in the market,” he says.

“During that time, we performed pretty well. We grew our overall sales partly on the basis of store openings, but our like-for-like sales performed significantly better than -10%.

“We have now started to see some improvement – partly generated by this crop of golfers doing well.”

The company has refitted its existing stores, backing that investment with advertising campaigns. Wood says the firm has also been helped by the fact that major equipment manufacturers are promoting technological innovations to their clubs.

The chain’s success at improving its stores is shown, says Wood, by the 13.9% rise in like-for-like sales at its stores in the 13 weeks to May 1.

He says: “More customers are coming into our stores to buy more because we’re offering what they want – which is a combination of range, service and value.”

The company has also launched a store opening programme.

“We’ve opened 14 stores in the last 2½ years, including one in Aintree,” says Wood. “We’re investing because of the belief we have in our proposition.

“The business was started in Warrington. Its first few stores were around the North West. But then it grew, particularly into Scotland.

“We are now a national retailer, but there are some towns and cities we aren’t in – Oxford, Swindon, Reading. They’re pretty sizeable places in which we should be represented.

“We cover the North West quite well, and we’re OK in Scotland. But the big opportunities for us are in the Midlands and the South.”

That expansion will continue, says Wood, at a steady pace.

“In time, our proposition could support about 140 stores,” he says.

“But we won’t get there overnight, because we’re looking for a specific type of property, close to golf courses and fitting the social demography of the golfer – and the property needs to be at the right price.

“We’ll probably look to open six to eight stores a year over the next five years.”

In 2004, American Golf bought SW Golf, the operator of the onlinegolf.co.uk brand. The group now generates 15% of its sales online, with 30% of those sales coming from overseas.

“It was the right strategic move for our business,” says Wood. “It’s given us a strong position in the internet space in the UK, but also in Europe.

“There are two areas of golf that are growing – one is online sales, the other is the European market. SW gave us access to both of those.

“American Golf’s website is now integrated on the same platform as onlinegolf.co.uk. We’re getting synergies from the acquisition and benefiting from their experience.”

The average handicap of American Golf’s retail staff, says Wood, is eight. The enthusiasm they have for the sport is passed on to customers, which in turn helps drive sales.

“They are there to help the amateur golfer improve their game,” says Wood. “The only way they can do that is if they know more than the average golfer. It’s part of our proposition as a specialist retailer that we have strong staff knowledge.

“If you’re fanatical about golf, then we’ve got a great job for you where you can talk about golf all day.”

Wood is, of course, a keen golfer himself, playing off a handicap of 18.

“But my colleagues call me ‘streaky’,” he smiles. “I play very well for about three holes, and then I’m all over the place.”

Those colleagues, says Wood, see him as an “open and collaborative” manager.

“Some people would say I’m demanding,” he adds, “but at the same time I have a reputation for being very fair in terms of what those demands are.”

Wood also prides himself on taking time to explore the company’s store network.

“Every summer, me and my operations director visit every store,” he says. “We meet the store teams to get a feel for what they deal with day in, day out.

“It’s a job that’s getting bigger – there were only 65 stores when we started out.”

Wood spends three days a week at the company’s Warrington headquarters, spending the other days visiting suppliers or the company’s e-commerce base, in Harlow.

Wood is based in London, where he has lived for 18 years.

“I get the 5.39am from Euston to Warrington most Mondays,” he says. “I’m still at my desk before most of the office.”

Outside work, he spends as much time as he can with his wife and nine-year-old twin daughters.

Wood remains upbeat about the future of his business, taking the view that, if it can negotiate a 10% fall in its market, then it is well-placed to take advantage when the economy recovers.

“We give the amateur golfer the right kit to improve their game,” he says. “If we get that right, we will get more people buying from us and our business will improve.

“I’m proud of what I’ve achieved at American Golf, but there’s still a job to be done.”