Dubai-based GMG has entered into a franchise agreement with JD Sports, the British sportswear retailer, to facilitate the expansion of JD Sports’ presence in the MENA region.
Under the agreement, JD Sports plans to open 50 stores in the region, starting with the UAE, Saudi Arabia, Kuwait, and Egypt, by 2028. This expansion is part of the company’s broader strategy to open 200-300 stores annually over the next five years.
The move into the MENA region follows JD Sports’ previous entry into the GCC market through the acquisition of GymNation, a UAE-based fitness company, by its subsidiary JD Gyms.
CEO Regis Schultz, who has experience with Al Futtaim Group’s retail division, described the franchise agreement as JD Sports’ first of its kind.
Schultz took over as CEO after the departure of Peter Cowgill, the executive chairman, who left following a joint fine by the Competition and Markets Authority (CMA) related to secret meetings with FootAsylum, a potential takeover target.
“We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG,” 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.”
Mohammad A Baker, deputy chairman and CEO of GMG, said: “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.”
According to JD Sports’ statement on the London Stock Exchange, the COVID-19 pandemic has led to an increased emphasis on health and wellness, contributing to significant growth in the athletic leisure market in the Middle East.
GMG, the Dubai-based company partnering with JD Sports, holds interests in both the MENA and Asia regions. GMG distributes major sportswear brands like Adidas, Speedo, and Wilson and also stays involved in the distribution of these brands. In addition, GMG has its own sports retail brand called Sun, Sand & Sports, and manages other businesses including supermarket retailers Geant and Aswaaq. GMG also operates divisions in health and beauty, properties, and logistics.
