JD Sports enters Middle East with new franchise deal

JD Sports has begun its expansion in the Middle East through a new franchise agreement with Dubai-headquartered company GMG.

The British sportswear retailer has been looking to enter the region as part of its five-year global growth strategy, through which it stated that it had its sights set on underpenetrated markets.

The 10-year agreement with GMG will centre around the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait and Egypt, where the brand looks to open around 50 stores by 2028.

JD further noted that a strong growth of the athletic market in the Middle East was bolstered in recent years by an increased focus on health and wellbeing as an offset of the pandemic.

In a release, Régis Schultz, CEO of JD, 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 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.”

JD unveiled its expansion plans in February 2023 when, following a strategic restructuring, it said it was planning to open up to 350 stores per year.