JD Sports has announced plans to open 140 new stores as part of a new franchise deal, expanding into Mexico and other Latin American markets. The UK sports retailer will partner with Grupo Axo, a company that helps brands grow in the country, to operate more than 140 JD stores in Mexico, with notable shops expected to be upsized and refurbished under the group's "bigger and better" format.
Expansion into Latin America
The move will also see the retailer branch out into Chile, Peru and Uruguay. The company said Mexico's activewear market is being driven by interests like running, football and fashion, helped by a large population of people under the age of 25.
Chief executive Regis Schultz said: "Bringing JD to this thriving market is an exciting milestone in our story."
CEO on Strategy
Schultz added: "JD's product offering aligns closely with consumer demand in Mexico and we believe our position at the intersection of sport, music and fashion will deepen the connection we have with that consumer."
Schultz has been in charge of the company's turnaround amid pressure from geopolitical instability, supply chain disruption and more cautious consumer spending, which has particularly impacted its North American market.
Financial Context
JD's profit expectations for the financial year were cut by about £50 million following a fall in sales over the latest quarter. However, bosses are hoping to develop franchise partnerships to expand in regions around the world where JD is targeting growth.
Schultz said: "This partnership is another important step in our 'JD Brand First' strategy and reinforces our ambition to make JD the leading global sports fashion destination across the world's most attractive consumer markets."
