JD Sports Fashion will open around 50 stores in the Middle East after agreeing to its first-ever franchise deal with Dubai-based global retailing, distributing and manufacturing company GMG, according to Reuters. The doors, to be situated in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt, will be a large part of JD’s strategy to open 200 to 300 doors over the next five years. According to recent research by Data Bridge, the sports apparel market across the Middle East will grow at a compound annual growth rate (CAGR) of 4.8 percent over the next five years. Reuters quotes CEO Régis Schultz as saying: “Through my own career, I have seen firsthand the massive untapped potential for retailers in the Middle East.”
JD called the 10-year agreement with GMG, which has a wealth of experience in sports and fashion retailing through a diversified portfolio of more than 500 GMG Sports stores across seven concepts, “a significant milestone” in the delivery of its global growth strategy announced in February. GMG’s flagship retail brand today is Sun and Sand Sports.
Late last month, the U.K.-based retailer confirmed its FY outlook that calls for a pre-tax profit of approximately £1.04 billion (€1.16b) for the 12 months ending in Jan. 2024 despite recent softening sales in North America. JD said those slower sales are being offset by growth in demand in the UK, Europe and Asia Pacific.
In February, Schultz outlined plans to grow revenues and margins by double digits over the next five years alongside a rapid store expansion as part of a new strategy.
The news of expansion in the Middle East follows the appointment of new CFO Dominic Platt in May and several proposed acquisitions, including French-based athletic footwear chain, Courir.
