JD Sports Fashion Plc JD and GMG announce franchise agreement
July 03 2023 - 2:00AM
RNS Non-Regulatory
TIDMJD.
JD Sports Fashion Plc
03 July 2023
JD Sports and GMG to bring the world's leading retailer of
sports fashion to the Middle East
Monday, 3 July 2023 - JD Sports Fashion Plc ('JD' or 'JD
Sports'), the leading global sports fashion retailer, and GMG, a
Dubai-headquartered well-being company operating leading brands
across sports, everyday goods, health and beauty, properties, and
logistics sectors, today announce the signing of JD's first
franchise agreement.
The deal is a significant milestone in the delivery of JD's
global growth strategy announced by Régis Schultz, Chief Executive
Officer of JD, at the company's Capital Markets Event in February
this year. The partnership will enable JD to deliver on the roll
out of its 'JD Brand First' strategy and is a pivotal move in the
continued expansion into underpenetrated markets.
Under the terms of the 10-year agreement, GMG will open around
50 stores under the JD fascia by 2028, with a focus on locations in
United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait and
Egypt. This is a meaningful contributor to JD's plans to open
between 200 and 300 new stores each year over the next five
years.
GMG has a wealth of experience in sports and fashion retailing
through its diversified portfolio of more than 500 GMG Sports
stores across seven concepts, including its global flagship brand,
Sun and Sand Sports. With an unparalleled understanding of the
consumer in the Middle East, GMG is perfectly positioned to
introduce the JD brand to the region, which is home to some of the
world's most innovative shopping malls.
A heightened focus on health and wellness, as a result of the
COVID-19 pandemic, has driven strong growth in the athletic leisure
market in the Middle East. Consumers increasingly recognise the
additional value provided by the latest styles, or sportswear with
advanced properties that will improve performance, with a recent
report by Data Bridge predicting that the sports apparel market in
the region could reach a value of US$23.2 million by 2029, at a
CAGR of 4.8%.
Strong brand partnerships are in the DNA of both JD and GMG, and
the deal will provide substantial opportunity for JD to showcase
its unique multi-brand, omnichannel proposition. Consumers will
benefit from exclusive access to the latest styles from some of the
world's largest brands including Nike, Adidas, New Balance, and
Under Armour.
Régis Schultz, 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. Through my own career, I have
seen firsthand 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.
"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."
Mohammad A. Baker, 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
revolutionise 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."
ENDS
Enquiries:
FGS Global Tel: 0207 251 3801
Rollo Head
Jenny Davey
James Thompson
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