3rd Jul 2023 08:35
(Alliance News) - JD Sports Fashion PLC on Monday said it has signed its first ever franchise agreement to open stores in the Middle East, putting in place a significant part of its expansion plan.
Under the agreement, Dubai-based GMG will open about 50 stores under the JD Sports brand by 2028, including in the United Arab Emirates, Saudi Arabia, Kuwait and Egypt. The stores will be a "meaningful contributor" to JD Sports' plan to open 200 to 300 new stores each year over the next five years, it said.
Founded in 1977, GMG is a manufacturer, distributor and retailer in the sport, 'everyday goods', and health and beauty sectors. It also has property and logistics arms.
"We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG," said JD Sports Chief Executive Officer Regis Schultz.
"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."
Schultz took over as CEO of JD Sports back in September. He joined from Al-Futtaim Group, a Dubai-based conglomerate that operates a substantial retail business spanning the Middle East and Asia. Schultz had been Al-Futtaim's president of retail since 2019.
JD Sports shares were up 0.2% to 146.25 pence early Monday in London.
By Tom Waite, Alliance News editor
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