JD Sports CEO announces five year “strategic approach” including up to 350 new stores per annum
Régis Schultz, CEO of JD Sports, is today rallying his management team at a Capital Markets Event to give an update on the strategic approach of the group over the next five years – including plans for significant retail expansion – to investors and analysts.
According to a statement released today, the presentation will focus on how JD will “enhance its position as the leading global sports-fashion specialist”, in the next chapter of the company’s growth.
As part of the event, the JD management team will set out details on its growth strategy and key objectives for the next five years which include:
- Double digit revenue growth
- Double digit market share in key regions
- Double digit operating margin
- Capex of £500 million to £600 million per annum with 50% to 60% of spend focused on store expansion in underpenetrated markets with 250 to 350 new JD stores per annum
- Cash generation from operating activities of £1 billion per annum
Schultz said: “Today marks a new, distinct chapter in the growth story of JD as we set our plans to become the leading global sports-fashion powerhouse. Building on our strong existing position and attractive long-term market dynamics, we see significant growth opportunities ahead by expanding JD internationally, notably in North America and Europe.
“We will also be enhancing our omnichannel retail offering, investing in technology and analytics, and leveraging our long-term strategic brand partnerships, to better serve more customers.
"Our track record of disciplined investment and strong retail execution means that JD is extremely well positioned to capitalise on its material headroom for growth globally and continue delivering value for shareholders.”
The four key strategic pillars being addressed at today’s event are:
- JD brand first
- Complementary concepts
- Beyond physical retail
- People, partners and communities
Last month JD Sports Fashion reported a 20% increase in revenue for the six-week period to 31 December 2022, driven by impressive in-store and online sales.
The group also saw a 10% increase in revenue for the 22 weeks to 31 December 2022, compared with growth of 5% during the first half of the financial year.
Revenues in North America saw growth of more than 20% through the second half to date, while the businesses in the UK, Republic of Ireland, Europe and Asia Pacific “maintained their first half momentum”, both in-stores and online.
In December, JD offloaded 15 “attractive but non-core brands” – including designer fashion retailers Choice, Giulio, Cricket, Tessuti, Scotts and Xile, contemporary menswear brands Pretty Green and Prévu Studio, men’s footwear brand Nicholas Deakins, and online womenswear label Missy Empire to its arch rival Frasers Group for £47.5m as it focuses on its core sports fashion business.
The new strategy imposed by Schultz comes in the wake of the departure of former Chairman and CEO Peter Cowgill in May 2022.
