UK high street sports retailer JD Sports is set to close 175 underperforming stores in the United States, scaling back its American operations after facing intense competition. The British company acquired Alabama-based brand Hibbett in 2024 for $1.1 billion as part of its expansion strategy in the US market.
Store Closures Over Three Years
JD Sports will shut 175 Hibbett locations across America over the next three years, focusing on more profitable and popular sites. The retailer currently operates nearly 1,200 Hibbett stores nationwide. Chief Financial Officer Dominic Platt confirmed the plan, stating, “We will see the beginning of the closure of the stores in North America with Hibbett, 175 stores probably over around three years.”
Platt noted that last year alone, JD Sports closed 39 stores overall. The decision follows a period of tough competition, particularly from Dick's Sporting Goods, which acquired Foot Locker for $2.5 billion.
Focus on Larger, Better Stores
CEO Régis Schultz explained that smaller stores were not generating sufficient profit to remain viable. “The problem of our small stores is that you need someone to open, you need someone to close. When sales are going down a little bit, you have no leverage, whereas with a larger store, you have leverage because you can invest in technology and all that stuff,” Schultz said.
The company aims to build “fewer, bigger, and better” stores that drive higher sales and allow for greater investment in technology, store design, and overall customer experience.
UK Closures and Geopolitical Impact
JD Sports has also closed more than 20 stores across the UK. The retailer attributed the impact on profits to geopolitical factors, including the situation in the Middle East. The closures reflect a broader strategy to streamline operations and focus on high-performing locations.
