UAE’s GMG to bring JD Sports to the Middle East, signs franchise agreement

Image: GMG

UAE-based retail giant GMG and JD Sports Fashion (JD Sports), the global sports fashion retailer, have signed a franchise agreement.

The agreement, which is JD Sport’s first franchise deal, will see GMG set the stage for the international brand to enter the Middle East market.

The deal is in line with JD Sport’s global growth strategy announced by Régis Schultz, the company’s CEO, in February.

The partnership will enable the company to deliver on the rollout of its ‘JD Brand First’ strategy and is a strategic step in the continued expansion into under-penetrated markets.

GMG to open 50 JD Sport stores

Under the terms of the 10-year agreement, the UAE-based retail company will open around 50 stores under the JD fascia by 2028, with a focus on locations in the UAE, Saudi Arabia, Kuwait and Egypt. It also ties in with JD Sport’s plans to open between 200 and 300 new stores each year over the next five years.

GMG has helped introduce more than 120 brands in the markets of the Middle East, North Africa, and Asia, while forging long-term relationships with many well-known international brands. The company’s long-term global ambitions are reflected in its ongoing journey to expand its portfolio and double its global workforce by 2025 across its markets.

Régis Schultz, CEO of JD Sports, said: “We are very pleased to be delivering this historic deal, the first franchise agreement JD has entered, in partnership with GMG. Through my own career, I have seen first-hand the massive untapped potential for retailers in the Middle East, and I am certain that GMG – with their expansive retail expertise and a local understanding of the customer – are the best partner for us in the region.

“We also know, from our love index, that no matter the market there is a direct correlation between having a strong physical retail presence, and popularity and love for the brand. We are excited by the opportunity to explore franchise partnerships as an avenue for further store growth in underpenetrated markets, leveraging the global growth phenomenon of athleisure while bringing our proven proposition to more customers worldwide.”

Mohammad A Baker, deputy chairman and CEO of GMG, said: “We are starting a new chapter in the sports retail landscape by acquiring the franchise rights for the GCC region and Egypt for JD Sports. By leveraging our respective strengths and expertise, we aim to revolutionise the sports retail sector, offering a diverse range of high-quality products, exceptional customer service, and innovative shopping experiences.

In recent news, GMG partnered with Emirates Flight Catering, to launch an exclusive range of on-the-go meals. Emirates Flight Catering and Everyday Goods – Retail division is supplying freshly made food to GMG’s network of retail stores nationwide.

Everyday Goods covers home-grown food brands, food retail stores and distributed brands, covering the entire food consumption chain from ‘farm to fork.’