JD Sports targets 140 shops in Mexico through franchise deal

JD Sports Fashion has unveiled plans to open more than 140 shops in Mexico through a new franchise deal that will take the brand to the country.

The Lancashire-based retail chain, which has its shares listed in London, said it wanted to tap into the fast-growing activewear market.

The partnership with Grupo Axo, which helps brands grow in Mexico, Chile, Peru and Uruguay, will launch the JD brand in the region.

Starting in 2027, Axo will operate more than 140 JD premises in Mexico, with key shops expected to eventually be upsized and refurbished under the group’s “bigger and better” format, according to the retailer.

JD said Mexico’s activewear market is being driven by interests like running, football and fashion, helped by a large population of people under the age of 25.

Chief executive Regis Schultz said: “Bringing JD to this thriving market is an exciting milestone in our story.

“JD’s product offering aligns closely with consumer demand in Mexico and we believe our position at the intersection of sport, music and fashion will deepen the connection we have with that consumer.”

Mr Schultz has been driving the company’s turnaround amid pressure from geopolitical instability, supply chain disruption and more cautious consumer spending, which has particularly impacted its North American market.

Its profit expectations for the financial year were cut by about £50 million following declining sales over the latest quarter.

Bosses are nonetheless hoping to develop franchise partnerships to expand in regions around the world where JD is targeting growth.

“This partnership is another important step in our ‘JD Brand First’ strategy and reinforces our ambition to make JD the leading global sports fashion destination across the world’s most attractive consumer markets,” Mr Schultz added.