Sept 21 (Reuters) – British sportswear retailer JD Sports on Monday announced its expansion into Mexico through a long-term franchise partnership with fashion retailer Grupo Axo, betting on strong demand from Mexico’s growing young population.
Here are some more details:
• JD cut its profit outlook after weak demand from its core younger and less affluent customer base hit its North American market of US and Canada, which accounts for over a third of its sales.
• Under the agreement, Axo will operate JD stores and e-commerce in Mexico, using JD’s brand and intellectual property, with the two companies also leveraging JD’s own-brand and exclusive product portfolio across footwear, apparel and accessories.
• JD said Axo will operate more than 140 of its premises in the country, through Axo’s existing sneaker stores, with plans to upsize stores at key locations over time.
• “We see a significant opportunity to lead the category in Mexico” said CEO Régis Schultz.
• The deal expands JD’s franchise platform, which currently spans 75 JD and Courir franchise stores across Europe, the Middle East, Africa and Asia.
(Reporting by Simone Lobo in Bengaluru; Editing by Nivedita Bhattacharjee)
