JD Sports Expansion into the Middle Eastern Market
UK-based sportswear retailer JD Sports has entered the Middle Eastern market by signing a ten-year franchise deal with Dubai-based GMG. This move is part of the retailer’s strategy to expand into underpenetrated markets. Under the agreement, GMG will open 50 stores under the JD brand by 2028 across the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt. This will contribute to JD’s plans to open between 200 and 300 new stores annually over the next five years. JD CEO Régis Schultz said: “We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG.”
Details of the Franchise Model
JD noted that the franchise model requires unified store design of 80-150 square meters, with a commitment to zero counterfeits. The franchised stores use JD’s cashier system and adhere to JD’s service standards.
Ownership of JD Sports
JD Sports is owned by Pentland Group, a privately-owned British company specializing in sports, outdoor, and fashion retail businesses. Pentland Group is the majority shareholder of JD Sports, owning 55% of the company. JD Sports Fashion plc, commonly known as JD Sports or JD, is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.