UK’s JD Sports expands into Mexico through Grupo Axo partnership

British sportswear company JD Sports has announced plans to expand its presence into Mexico through a long-term franchise agreement with Mexican retailer Grupo Axo, according to Reuters on September 21. The move is driven by the company's belief in the strong demand from Mexico's increasing young population. However, JD Sports has recently revised its profit outlook downward due to weak sales from its primary younger and less affluent customer base in North American markets, which make up more than a third of its revenue.

As part of the partnership, Grupo Axo will manage JD Sports stores and e-commerce operations in Mexico using the brand and intellectual property of JD Sports. The companies will also utilize JD's own-brand and exclusive product range across footwear, apparel, and accessories. JD Sports revealed that Grupo Axo will operate over 140 of its stores in Mexico, starting with existing sneaker stores and planning to expand them at key locations in the future.

Régis Schultz, CEO of JD Sports, expressed optimism about the opportunity to lead the market in Mexico. This expansion further strengthens JD Sports' franchise platform, which currently includes 75 JD and Courir franchise stores across Europe, the Middle East, Africa, and Asia.