South Africa's TFG bolsters sportswear business with JD Sports franchise deal

China Cultural Tourism and Agriculture

13/03/2024 11:16

JOHANNESBURG, March 13 (Reuters) - Upmarket fashion and
homeware retailer TFG  TFGJ.J  said on Wednesday that it has
signed a franchise agreement to be British sportswear giant JD
Sports Fashion's  JD.L  exclusive retail partner in South
Africa.
    Demand for casual and sportswear has remained steady in
South Africa, even after the COVID-19 pandemic, which
accelerated a shift to working from home, prompting consumers to
shop for comfortable footwear and leggings. Some still work from
home two to three days a week.
    The deal further bolsters TFG's sneaker and sports fashion
businesses, which compete with international sports brands like
Nike  NKE.N , as well as local rivals such as Mr Price's
 MRPJ.J  Studio 88 and UK footwear company Office, a unit of
Truworths  TRUJ.J , which is also expanding in South Africa.
    JD Sports said the deal is part of its global growth
strategy to expand into underpenetrated markets and become a
global athletic leisurewear "powerhouse".
    "This partnership allows TFG to bring a new compelling
international sports fashion offering to the South African
market," Anthony Thunström, TFG CEO said in a statement.
    TFG expects to launch the first new physical JD Sports
stores by the end of the year, with more than 40 JD stores
earmarked over the next five years in South Africa, Thunström
added. 
    TFG's sportswear businesses are Sportscene, Totalsports and
Sneaker Factory, which according to Thunström are already the
destinations of choice for athletic and leisure sports apparel.
    
    

 (Reporting by Nqobile Dludla; Editing by Sharon Singleton)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))