JD Sports targets 140 shops in Mexico through franchise deal

With Mexico’s fast-growing athleisure market and young population, Susannah Streeter, chief investment strategist at Wealth Club, can see why JD Sports plans to open 140 shops there.

She said: “JD Sports is vaulting into the Mexican market, hoping to start on a brisk run by opening more than 140 shops from 2027 through a new franchise partnership.

“The retailer is looking to kick off a Mexican wave of spending by tapping into a fast-growing athleisure market in the country, and Mexico’s young population gives it a large consumer base to target.

“Widening its geographical footprint should help it build sales volumes and create another engine of growth as conditions become tougher in some of its biggest markets.

“In the US, the sneaker has become a warning light on the dashboard of consumer spending, with shoppers increasingly thinking twice before splashing out on the latest must-have footwear.

“Like-for-like sales fell by 6.8 per cent in North America, which accounts for 35 per cent of JD’s sales, with weaker demand for the latest must-have footwear.

Consumers may still be spending, but they are becoming more selective about discretionary purchases, particularly when household budgets are already under pressure.

“So JD Sports is widening its sales running track by pushing into Mexico, chasing new consumers, rather than waiting on shoppers in more mature markets to start splashing the cash again.”