JD Sports signs first franchise deal with GMG
It also stated that with an ‘unparalleled understanding’ of the consumer in the Middle East, GMG is ‘perfectly positioned’ to introduce the JD brand to the region
JD Sports has signed its first franchise agreement in partnership with GMG, a Dubai-headquartered well-being company operating leading brands across sports, everyday goods, health and beauty, properties, and logistics sectors.
The deal will see JD expand its presence in the Middle East and under the terms of the 10-year agreement, GMG will open around 50 stores under the JD fascia by 2028 in the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait and Egypt.
JD said that the partnership will enable it to deliver on the roll out of its ‘JD Brand First’ strategy and is a “meaningful contributor” to its plan to open between 200 and 300 new stores each year over the next five years.
It also stated that with an “unparalleled understanding” of the consumer in the Middle East, GMG is “perfectly positioned” to introduce the JD brand to the region.
Consumers will benefit from “exclusive” access to the latest styles from brands including Nike, Adidas, New Balance, and Under Armour.
Régis Schultz, CEO of JD Sports, 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 also know, from our love index, that no matter the market there is a direct correlation between having a strong physical retail presence, and popularity and love for the brand. 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, added: “We are starting a new chapter in the sports retail landscape by acquiring the franchise rights for the GCC region and Egypt for JD Sports. By leveraging our respective strengths and expertise, we aim to revolutionise the sports retail sector, offering a diverse range of high-quality products, exceptional customer service, and innovative shopping experiences.
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.”
