JD Sports to enter Mexico through franchise partnership with Axo
JD Sports is entering Mexico through a long-term franchise partnership with omnichannel retail distribution company Axo.
Under the agreement, Axo will operate JD stores and ecommerce in Mexico, using JD’s brand and intellectual property. Axo and JD will also work to ensure that they offer a differentiated proposition for Mexican consumers across footwear, apparel and accessories.
Subscribe to TRBFrom 2027, Axo will operate more than 140 JD premises in Mexico, using its existing retail estate of sneaker stores. Over time, key locations are expected to be upsized and “reimagined” in line with JD’s flagship “bigger and better” format to bring a new sports fashion offering to Mexican consumers.
With Mexico’s population of over 130 million, around 40% of whom are under the age of 25, JD said its product offering aligns closely with its position as a curator of sport, music and fashion trends.
The company also said the market offers a significant opportunity for growth, with an activewear market currently worth around $6.5 billion expected to grow to over $10 billion by 2034, according to IMARC. According to Forbes, Mexico is also currently one of the fastest growing ecommerce markets in the world.
In addition to building on JD’s established presence in the US and Canada, the move will build on the company’s growing franchise platform. JD and its Courir brand operate 75 franchise stores across Europe, the Middle East, Africa and Asia as part of a strategy to expand into new markets with “best-in-class” local operators.
Régis Schultz, chief executive of JD Sports Fashion, said: “Bringing JD to this thriving market is an exciting milestone in our story. JD’s product offering aligns closely with consumer demand in Mexico and we believe our position at the intersection of sport, music and fashion will deepen the connection we have with that consumer.
“As the top global retailer for a number of our brand partners, we see a significant opportunity to lead the category in Mexico. Axo is the ideal partner for JD in Mexico, with a 30-year track record of working with brands in the country.
“This partnership is another important step in our ‘JD Brand First’ strategy and reinforces our ambition to make JD the leading global sports fashion destination across the world’s most attractive consumer markets.”
Andrés Gómez, chairman and chief executive of Grupo Axo, said: “We are delighted to partner with JD Group, the world’s leading sports fashion retailer, to bring its iconic proposition to consumers across Mexico.
“JD’s deep brand relationships, differentiated product offer and immersive retail experience are highly complementary to Axo’s platform, capabilities and understanding of the Mexican consumer.”
Last month, JD lowered its full year profit outlook after posting a drop in second quarter sales in key markets. The company said it expected pre-tax profit before adjusting items to come in at between £700 million and £800 million, compared to a previous guidance of £750 million to £850 million.
