JD Sports to open 50 stores in Middle East

JD Sports has struck a deal to open dozens of stores across the Middle East as part of its first-ever franchise partnership.

The sportswear seller announced that Dubai-based wellness company GMG would launch around 50 outlets under the JD brand name by 2028, primarily in Egypt, Kuwait, Saudi Arabia and the United Arab Emirates.

It forms part of a larger ambition by JD to open between 200 and 300 shops per annum across the world over the coming five years and capitalise on the growing athletic leisure or ‘athleisure’ market in the Middle East.

GMG, also known as Gulf Marketing Group, currently runs the region’s biggest sports retailer, Sun and Sand Sports, with more than 500 stores in six countries.

Initially beginning life as a butcher’s shop in 1977, the family-owned conglomerate has since diversified into a wide range of sectors, such as logistics, beauty, health, property and food.

On the sports retail front, the business runs seven brands, including cycling-focused Pedaliere and trainer seller Dropkick, and has partnerships with brands such as Nike, New Era and Jordan.

JD Sports said the tie-up with GMG would enable customers to gain ‘exclusive access’ to new equipment from some of the world’s biggest brands, including New Balance, Adidas, and Under Armour.

Régis Schultz, its chief executive, said: ‘Through my own career, I have seen first hand the massive untapped potential for retailers in the Middle East, and I am certain that GMG – with their expansive retail expertise and a local understanding of the customer – are the best partners for us in the region.’

He added: ‘We are excited by the opportunity to explore franchise partnerships as an avenue for further store growth in underpenetrated markets, leveraging the global growth phenomenon of athleisure.’ 

French-born Schultz, 54, who took over in September last year, is spearheading a plan to turn the group into a ‘global sports-fashion powerhouse’ by investing up to £3billion opening as many as 1,750 more stores worldwide. 

Under his predecessor Peter Cowgill, JD became the UK’s largest athleisurewear retailer thanks to a series of acquisitions, exclusive deals with Nike and Adidas, expansion into the United States, and rising popularity among women.

The group expects profits this year to hit the £1billion mark on the back of buoyant demand in the UK, Europe and Asia Pacific regions.

JD Sports Fashion shares were 0.4 per cent lower at 145.4p on late Monday afternoon, but they have risen by around 27 per cent in the past 12 months.