JD Sports inks first-ever franchise deal in Middle East

3rd Jul 2023 12:31

(Sharecast News) - UK sportswear retailer JD Sports Fashion on Monday said it planned to open around 50 stores in the Middle East after agreeing a franchise deal with Dubai-based GMG.

The chain said the 10-year deal would focus on locations in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt as part of it strategy to expand into underpenetrated markets.

JD said that 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.

"Through my own career, I have seen firsthand the massive untapped potential for retailers in the Middle East," said chief executive Régis Schultz.

In February, JD said it was spending up to £3bn to open up to 1,750 stores over five years, as Schultz outlined his plans for the retailer to become an athletic leisurewear "powerhouse" and in May agreed to buy France's Groupe Courir, which trades from 313 stores.

Last week, JD said there had been some softening in trade in its North American business in June, which would be offset by growth in demand in the UK, Europe and Asia Pacific, sending the shares lower.

Reporting by Frank Prenesti for Sharecast.com