JD Sports is closing its two remaining Hip stores this week, marking the end of the brand's physical presence on UK high streets. The Manchester branch on Thomas Street shut on June 28, and the Leeds store on Vicar Lane will close at the end of June, according to Drapers.
Hip Brand Moves Online-Only
JD Sports acquired the Hip brand in 2014. Despite the store closures, Hip will continue trading online via its website. The decision to scrap the brick-and-mortar locations is part of a broader strategy to phase out underperforming stores and focus on more profitable sites.
Earlier Store Closures and Financial Pressures
Earlier this year, JD Sports closed 24 stores across the UK due to financial uncertainty. The company still operates around 4,000 stores worldwide. The retailer has faced tough competition, particularly from Dick's Sporting Goods, which bought Foot Locker for $2.5 billion. JD Sports also reported a drop in annual earnings and cited concerns over tensions in the Middle East, which could lead to higher costs and decreased consumer demand.
US Expansion and Further Cuts
Last month, The Mirror reported that JD Sports plans to close 175 Hibbett stores in the US over the next three years to focus on more profitable locations. The British retailer acquired the Hibbett brand in 2024 for $1.1 billion as part of its US expansion.
Strategy for "Fewer, Bigger, Better" Stores
JD Sports has outlined plans to reduce its number of physical stores to create "fewer, bigger and better" shops. A spokesperson told 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."
