Retail conglomerate GMG has signed an agreement with global sportswear retailer JD Sports to introduce it to the Middle East market, with a particular focus on the UAE, Saudi Arabia, Kuwait and Egypt.
Once JD Sports enters the Middle East market, consumers will benefit from exclusive access to the latest styles from some of the world’s largest sports and athleisure brands including Nike, Adidas, New Balance and Under Armour.
According to the terms of the 10-year deal between the two companies, GMG will open around 50 stores across the region under the JD fascia by 2028.
“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,” Mohammed A. Baker, Deputy Chariman and CEO of GMG, said in a statement on Monday.
Over the past 45 years, GMG has helped introduce more than 120 brands into the markets of the Middle East, North Africa, and Asia. GMG has a diverse portfolio of more than 500 sports retail stores across seven concepts, including its flagship brand and homegrown concept Sun & Sand Sports.
JD Sports’ ambitious store opening plan
JD Sports aims to open between 200 and 300 new stores each year over the next five years, and this new partnership is expected to contribute immensely to this goal.
“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 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 partner for us in the region,” said JD Sports CEO Régis Schultz.
The COVID-19 pandemic led to a heightened focus on health and wellness, driving strong grown in the athleisure market in the Middle East. A recent report by Data Bridge estimated that the region’s sports apparel market could reach a value of over $23 billion by 2029, at a Compounded Annual Growth Rate of 4.8 percent.
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