FTSE 100 retailer JD Sports has announced plans to launch more than 140 shops in Mexico, partnering with local retail distributor Axo. This move is intended to address a slowdown in sales within its North American market.
North America currently accounts for 38 per cent of JD Sports' global turnover, but sales in the region fell by 6.8 per cent in the three months leading up to August. Under the new agreement, Axo will manage JD's stores and online retail operations in Mexico, utilising JD's brand and intellectual property.
JD Sports believes the Mexican market holds significant potential, noting that approximately 40 per cent of its 130 million citizens are under 25. The country's activewear market is valued at around $6.5bn and is projected to grow to $10bn by 2034, according to the retailer. JD's chief executive, Régis Schultz, stated that the company's product offering aligns with consumer demand in Mexico.
The retailer plans to begin opening its Mexican stores next year, with an intention to upgrade best-performing sites later as part of its "bigger and better" flagship store strategy. This expansion is the latest development in JD's global franchise platform, which includes 75 franchise stores across Europe, the Middle East, Africa, and Asia, including those from Courir, a French trainer seller acquired in 2024.