JD Sports to launch dozens of stores in Middle East in retailer’s first franchise deal

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.

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 in a statement issued on Monday morning: “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.”

In May, JD Sports Fashion reported record profits and revenues as the retailer steamed ahead with its global expansion plans and increased its prices.