Russ Mould, investment director at AJ Bell, is surprised JD Sports has waited this long to venture into Mexico.
He said: “JD Sports is to expand into Mexico via a franchise agreement.
“While the sports retailer is already established in multiple countries, it’s always a risk going into a new territory as there is inevitably a difference in how business is done, as well as from a cultural perspective.
“Using a franchise partner who already knows the territory inside out is a lower risk way for a brand like JD to dip its toes in the water.
“The key question is why JD Sports hasn’t already expanded into Mexico, given it has a large population with millions of people who match its target audience by age.
“The venture provides another growth lever and comes at an important time for JD, with other parts of its business finding it harder going.
“JD has suffered from shifting trends whereby appetite to buy expensive sports footwear is waning, and the US market is awash with discounting thanks to a more cautious consumer.”
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