JD Sports enters Middle East with GMG franchise agreement

The deal is a significant milestone in the delivery of JD’s global growth strategy announced by Régis Schultz, chief executive officer of JD, at the company’s capital markets event in February this year. The partnership will enable JD to deliver on the roll out of its ‘JD Brand First’ strategy and is a pivotal move in the continued expansion into underpenetrated markets.

Under the terms of the 10-year agreement, GMG will open around 50 stores under the JD fascia by 2028, with a focus on locations in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt. This is a meaningful contributor to JD’s plans to open between 200 and 300 new stores each year over the next five years.

GMG has a wealth of experience in sports and fashion retailing through its diversified portfolio of more than 500 GMG Sports stores across seven concepts, including its global flagship brand, Sun and Sand Sports. With an unparalleled understanding of the consumer in the Middle East, GMG is perfectly positioned to introduce the JD brand to the region, which is home to some of the world’s most innovative shopping malls, the UK company said in a press release.

Strong brand partnerships are in the DNA of both JD and GMG, and the deal will provide substantial opportunity for JD to showcase its unique multi-brand, omni-channel proposition. Consumers will benefit from exclusive access to the latest styles from some of the world’s largest brands including Nike, Adidas, New Balance, and Under Armour.

“We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG. Through my own career, I have seen firsthand the massive untapped potential for retailers in the Middle East, and I am certain that GMG – with their expansive retail expertise and a local understanding of the customer – are the best partners for us in the region,” Régis Schultz, CEO of JD Sports, said.

“We also know, from our love index, that no matter the market there is a direct correlation between having a strong physical retail presence, and popularity and love for the brand. We are excited by the opportunity to explore franchise partnerships as an avenue for further store growth in underpenetrated markets, leveraging the global growth phenomenon of athleisure while bringing our proven proposition to more customers worldwide,” explained Schultz.

“We are starting a new chapter in the sports retail landscape by acquiring the franchise rights for the GCC region and Egypt for JD Sports. By leveraging our respective strengths and expertise, we aim to revolutionise the sports retail sector, offering a diverse range of high-quality products, exceptional customer service, and innovative shopping experiences. This alliance is a testament to our commitment to enhancing the lives of consumers in the region, as we embark on a journey to provide them with unmatched choices and empower their active lifestyles,” Mohammad A Baker, deputy chairman and CEO of GMG, said.

Fibre2Fashion News Desk (RR)