UK sportswear retailer JD Sports today 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.
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.
