JD Sports is permanently closing its two Hip stores on the high streets of Manchester and Leeds, shifting the brand's focus to online trading. The Manchester outlet on Thomas Street shut on June 28, while the Leeds branch on Vicar Lane is set to close at the end of the month, according to Drapers. Despite the closures, Hip will continue to operate through its website.
Acquisition and Strategy Shift
JD Sports first acquired the Hip brand in 2014. The decision to close the physical stores aligns with the retailer's broader strategy to reduce its physical footprint and concentrate resources on more successful sites. Earlier this year, JD Sports was forced to close 24 UK stores amid financial uncertainty, yet it still operates 4,000 stores worldwide.
US Market Adjustments
Last month, The Mirror reported that JD Sports plans to shut 175 Hibbett stores across the US over the next three years, again focusing on more profitable outlets. The British retailer acquired the Hibbett brand in 2024 for $1.1 billion to expand its presence in the US market.
Competition and Earnings
Over the past two years, JD Sports has faced stiff competition, notably from Dick's Sporting Goods, which purchased Foot Locker for $2.5 billion. The company recently disclosed a fall in annual earnings and cited concerns that ongoing tensions in the Middle East could drive up costs and dampen consumer demand. However, it stressed there had been no direct exposure, only heightened uncertainty.
Future Outlook
The retailer outlined proposals to reduce its physical store presence in favour of "fewer, bigger and better" outlets. JD Sports told the Manchester Evening News in May: "Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge."
