Dubai-based retailer GMG has recently announced a franchisee agreement with leading global sports fashion retailer JD Sports Fashion Plc, marking an important milestone for JD's global growth strategy. This agreement will pave the way for JD's entry into the Middle East market, with approximately 50 stores planned to be opened under the JD brand by 2028. The focus will primarily be on locations in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt. This collaboration aligns with JD's objective of opening 200 to 300 new stores annually over the next five years.
The partnership between GMG and JD signifies a significant step towards the implementation of JD's "JD Brand First" strategy and its expansion into underpenetrated markets. The Middle East region has witnessed a surge in the athletic leisure market due to an increased emphasis on health and wellness following the Covid-19 pandemic. Consumers in this region are increasingly valuing the latest sportswear styles and advanced performance properties. A recent report by Data Bridge projects that the sports apparel market in the Middle East could reach a value of $23.19 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.8 percent.
By showcasing a multi-brand, omnichannel proposition, JD will have a substantial opportunity to cater to consumers' needs. Exclusive access to the latest styles from renowned brands like Nike, Adidas, New Balance, and Under Armour will be made available to customers in the Middle East through this partnership.
Régis Schultz, CEO of JD Sports Fashion Plc, expressed his satisfaction with the historic franchise agreement and highlighted the untapped potential for retailers in the Middle East. He emphasized that GMG, with its extensive retail expertise and understanding of the local customer, is the ideal partner for JD in the region. Schultz also emphasized the correlation between a strong physical retail presence and brand popularity and affection, citing the company's "love index." JD is excited about the prospect of exploring franchise partnerships as a means of expanding its store network in underpenetrated markets, capitalizing on the global athleisure trend and extending its proven proposition to a broader customer base worldwide.
Mohammad A. Baker, Deputy Chairman and CEO of GMG, expressed his enthusiasm for the new chapter in the sports retail landscape, made possible by the acquisition of franchise rights for JD Sports in the GCC region and Egypt. Baker highlighted the aim of revolutionizing the sports retail sector by leveraging the strengths and expertise of both GMG and JD. The alliance seeks to provide consumers in the region with diverse high-quality products, exceptional customer service, and innovative shopping experiences. GMG's commitment to enhancing the lives of consumers is evident in its track record of introducing over 120 brands in the Middle East, North Africa, and Asia, thereby establishing long-term relationships with prestigious international brands. As a growth-oriented company, GMG aims to expand its portfolio and double its global workforce across its markets by 2025.
