JD Sports, the leading sports fashion retailer, disclosed that it will acquire the remaining 40% share in Marketing Investment Group (MIG). Consequently, this makes it the 100% sole owner of the Polish footwear and clothing company.
The leading seller of Nike, adidas, and other sportswear brands primarily locked a deal in 2021, acquiring 60% of MIG’s shares. However, with its footsteps approaching Central and Eastern Europe, the brand announced a grab of the remaining 40% of the Poland-based retailing company. JD Sports has not announced any financial terms of the deal since its latest acquisition.
In hopes of a stronger foothold across Central and Eastern Europe, JD Sports has extended its franchise to five countries. Following this expansion plan, JD Sports allocated a budget of £3 billion to open 1,750 stores over a period of five years. As a result, the brand would spend between £500m to £600m annually to reach its market penetration goals.
Additionally, it agreed to lock in a deal to buy minority investors of Iberian Sports Retail Group. Also, the brand established a 10-year partnership with Dubai-headquartered GMC for the development of its first franchise. Following this deal, the brand will open 50 new stores in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt by 2028.
According to Régis Schultz, the CEO of JD Sports, the acquisition of the 40% MIG stake will allow them to accelerate its development in Central and Eastern Europe. Furthermore, this is based on the strong foundations established alongside the outgoing shareholders.
With the five-year growth plan, JD is setting its sights on becoming the leading global sports-fashion powerhouse.