JD Sports Partners with Grupo Axo to Launch Franchise Stores in Mexico
JD Sports Expands into Mexico with Grupo Axo Partnership
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.
Key Details of the JD Sports and Grupo Axo Deal
Here are some more details:
Profit Outlook and Market Performance
• 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.
Franchise Agreement Structure
• 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.
Store Operations and Expansion Plans
• 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.
CEO Statement on Market Opportunity
• "We see a significant opportunity to lead the category in Mexico" said CEO Régis Schultz.
Global Franchise Platform Expansion
• 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)
