JD Sports Fashion is targeting Mexico with plans to open more than 140 stores under a new franchise partnership, as the Lancashire-based retailer seeks growth in international markets amid pressure on consumer spending and profits.
The London-listed sports fashion group will launch its brand in Mexico through a partnership with Grupo Axo, which operates and develops international brands across Mexico, Chile, Peru and Uruguay.
From 2027, Axo will operate more than 140 JD premises across Mexico. The retailer said key locations could eventually be expanded and refurbished under its “bigger and better” format.
JD is targeting Mexico’s growing activewear market, where demand is being supported by interests including running, football and fashion, as well as a young population.
Chief executive Regis Schultz said: “Bringing JD to this thriving market is an exciting milestone in our story.
“JD’s product offering aligns closely with consumer demand in Mexico and we believe our position at the intersection of sport, music and fashion will deepen the connection we have with that consumer.”
The expansion comes as Schultz continues to lead a turnaround at JD amid geopolitical instability, supply chain disruption and more cautious consumer spending. North America, an important market for the group, has been particularly affected by weaker demand.
JD recently cut its profit expectations for the financial year by about £50 million following declining sales in its latest quarter.
Against that backdrop, franchise agreements are becoming an important element of the group’s international expansion strategy, allowing JD to enter new markets through local operating partners while seeking to limit the capital required for a physical store rollout.
Schultz said the Mexico agreement formed part of a wider effort to strengthen the global reach of the brand.
“This partnership is another important step in our ‘JD Brand First’ strategy and reinforces our ambition to make JD the leading global sports fashion destination across the world’s most attractive consumer markets,” he added.
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