JD Sports to open up to 1,750 shops over next five years
According to plans outlined by its new chief executive, JD Sports claimed it will invest up to £3 billion to establish as many as 1,750 outlets worldwide. The shares increased 9.2% to 178 pence in afternoon trade, surpassing pre-pandemic levels, after Régis Schultz, who assumed leadership last year, told investors he planned to transform the £8.8 billion firm into a "global sports-fashion powerhouse." We expect JD to develop significantly by entering new markets, particularly North America and Europe, he added. Over the next five years, the retailer will invest between £500 million and £600 million per year into its operations, the majority of which will be used to increase the number of stores it has in the US and Europe.In order to quadruple its position in important markets, Schultz, who unveiled his plan during a capital markets day on Thursday, is also aiming for "double-digit revenue growth" and "double-digit operating margins." It comes after JD Sports forecasted that robust demand for trendy trainers and athleisure will cause yearly revenues to surpass £1 billion for the first time for the year ending on February 3, 2024. Schultz acknowledged that some investment will take place in the UK but emphasised the need of growing the business' presence in the US from its present 120 outlets to "700-800," in addition to investing more in France, Germany, and Italy.
In addition, the former head of Monoprix stated that JD Sports was seeking new acquisitions to "extend our footprint in regions that are crucial for us but where we do not operate." He replaced Peter Cowgill, who is generally recognised with building ties with important suppliers and expanding exposure to the US market to transform JD Sports into a multibillion-pound company. Cowgill was removed from his position last year, though, as worries about corporate governance, supervision, and succession planning grew. The retailer increased from 2,636 locations in 2021 to 3,402 locations in January of last year. Since the lifting of pandemic limitations, customers have flocked back to physical stores in record numbers, and JD Sports has profited. Boohoo, an online apparel retailer, announced last month that it had underperformed due to this.surpassing online clothing stores like Boohoo, which said this month that its full-year revenue will decrease by 12%. This Monday, the sports company disclosed that it had been the target of a cyberattack that had exposed the personal information of 10 million consumers who had made transactions between November 2018 and October 2020. It declared that it was collaborating with the Information Commissioner's Office and that outside professionals were assessing its cyber security. On Thursday, Schultz declined to make any more comments.
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