JD Sports expands to Middle East in first franchise deal
It plans to open around 50 stores under the JD brand over the next five years, in countries such as United Arab Emirates, Saudi Arabia and Kuwait.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.JD Sports is to launch dozens of stores in the Middle East in the sportswear retailer’s first franchise deal as part of its ambitious growth plans.
The Bury-based retailer told investors on Monday it will expand into the region through a new partnership with Dubai-based company GMG.
It plans to open around 50 stores under the JD brand over the next five years, focusing on locations in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt.
The move is part of plans by JD Sports to open between 200 and 300 new stores each year over the next five years.
Regis Schultz, chief executive officer of JD, launched the rapid growth strategy at its capital markets event in February.
The boss joined JD Sports last year following the exit of the retailer’s executive chairman Peter Cowgill, months after the UK competition watchdog had fined the firm £4 million after reports of secret meetings between Mr Cowgill and the boss of takeover target FootAsylum.
Mr Schultz had been president of retail for Dubai-based conglomerate Al-Futtaim Group before he joined JD Sports.
“We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG,” Mr Schultz said.
“Through my own career, I have seen first-hand 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.”
Mohammad A Baker, deputy chairman and CEO of GMG, said: “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.”