JD Sports has begun its expansion in the Middle East through a new franchise deal with Dubai-based company GMG.
The British sportswear company is aiming to enter the region as part of its five-year global growth strategy, targeting underserved markets.
The ten-year agreement with GMG will focus on the United Arab Emirates, Kingdom of Saudi Arabia, Kuwait and Egypt, where the brand plans to open around 50 stores by 2028.
JD also noted that the strong growth of the Middle East sports market in recent years has been fueled by an increased focus on health and well-being to offset the pandemic.
“We are very pleased to execute this historic deal, the first franchise deal that JD has signed with GMG,” said Régis Schultz, JD’s managing director, in a statement. “Throughout my career I have seen first-hand the tremendous untapped potential for retail in the Middle East and I am confident that GMG, with its extensive retail experience and local understanding of customers, is the best partner for us in of the region is.”
“We are excited by the opportunity to explore franchise partnerships as a path to further growth in underserved markets, capitalizing on the global growth phenomenon of athleisure while bringing our proven offering to more consumers worldwide.”
JD announced its expansion plans in February 2023 when, following a strategic reorganization, the company said it wanted to open up to 350 stores per year.
This post originally appeared on FashionUnited.com