JD Sports Fashion said it has entered into its first franchise agreement after signing a deal with GMG, a Middle-Eastern well-being company.
A statement from the FTSE 100 company said the agreement will enable it to roll out its ‘JD Brand First’ strategy and is pivotal in the continued expansion into underpenetrated markets.
As part of the 10-year agreement, GMG will open around 50 stores under the JD brand by 2028, with a focus on locations in the UAE, Saudi Arabia, Kuwait and Egypt.
JD said GMG, which is based in Dubai and operates brands across sports, properties and logistics, has a “wealth of experience in sports and fashion” with a diversified portfolio of more than 500 stores.
“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,” said JD CEO Régis Schultz.
“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,” Schultz added.