JD Sports Fashion Plc signed its first franchise agreement with Dubai-based GMG. Under the ten-year agreement, GMG will open around 50 stores under the JD banner by 2028, focused on locations in the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, and Egypt; this is a meaningful contributor to JD’s plans to open between 200 to 300 new stores each year over the next five years.
JD Sports Fashion Plc currently has about 3,600 stores.
GMG has a diversified portfolio of more than 500 GMG Sports stores across seven concepts, including its global flagship brand, Sun and Sand Sports.
JD Sports Fashion said a heightened focus on health and wellness due to the pandemic had driven strong growth in the athletic leisure market in the Middle East. A recent Data Bridge report forecasted that the region’s sports apparel market could reach a value of US$23.2 million by 2029, at a CAGR of 4.8 percent.
Régis Schultz, the CEO of JD Sports, said: “We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG. Throughout my career, I have seen firsthand the massive untapped potential for retailers in the Middle East, and I am certain that GMG, with its expansive retail expertise and a local understanding of the customer, are the best partner for us in the region.
“We also know, from our love index, that no matter the market, there is a direct correlation between having a strong physical retail presence and popularity and love for the brand. 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 while bringing our proven proposition to more customers worldwide,” concluded Schultz.
Mohammad A. Baker, the deputy chairman and CEO of GMG, said: “We are starting a new chapter in the sports retail landscape by acquiring the franchise rights for the GCC region and Egypt for JD Sports. By leveraging our respective strengths and expertise, we aim to revolutionize the sports retail sector, offering a diverse range of high-quality products, exceptional customer service, and innovative shopping experiences. This alliance is a testament to our commitment to enhancing the lives of consumers in the region as we embark on a journey to provide them with unmatched choices and empower their active lifestyles.”
Photo courtesy JD Sports
