RCS - JD Sports Fashion - JD and GMG announce franchise agreement

JD Sports FashionAnnouncement

03/07/2023 08:00

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RNS Number : 7167E  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
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fprotect-eu.mimecast.com%2Fs%2Fq5CiCEZ85U1DKKAfNJdgk%3Fdomain%3Ddatabridgemarketresearch.com&data=05%7C01%7Creka.s%40gmg.com%7Cc7eeea0baf5745b4a78608db73c59731%7Cbd3e03d277d04f70b02edd15728748c5%7C0%7C0%7C638231064770654967%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=jvaccZKVbQ22%2FGv6jlxWOHDyUljAIWCABHABxTO6Cmo%3D&reserved=0)
 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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