JD Sports launches in Mexico amid North American slowdown

JD Sports, a prominent retailer in the UK, is set to expand its presence in Mexico by opening over 140 new stores, as the footwear and sportswear giant seeks to counter declining sales in its North American market. The company has entered into a partnership with Axo, a retail distributor headquartered in Mexico, to establish its stores and online retail presence in the country.

JD Sports aims to leverage its unique position in the market, catering to footwear, apparel, and lifestyle trends for younger consumers aged under 25. With a thriving activewear market valued at approximately $6.5bn, the retailer believes Mexico offers vast potential for growth, with the market projected to reach $10bn by 2034. JD Sports' CEO, Régis Schultz, highlighted that the brand's offerings resonate with Mexican consumers, and Axo's deep market expertise will facilitate the successful implementation of JD's strategy.

The company's expansion in Mexico will commence next year, with an aspiration to revamp its top-performing stores in alignment with its "bigger and better" flagship store approach. This move comes amid a challenging period for JD Sports, following a profit warning and a recent internal boardroom succession dispute. The company has already reduced its profit target by £50m, attributing sluggish sales and increased competition in the US market, as well as rising cost-of-living pressures, to the slowdown.

JD Sports' CEO, Schultz, narrowly escaped a plot to remove him from his position last year, and investors are eagerly awaiting tangible progress from his growth initiatives. Schultz was recently succeeded by former IKEA boss Peter Agnefjäll as the new chairman of the board.