Wednesday November 27, 2024, JD Sports Fashion announced that it had finalized the acquisition of Runr for 520 million euros. The group also bought its competitor Hibbett in the United States for $1.1 billion. JD Sports Fashion now has around twenty brands in its portfolio. The JD brand is the largest in terms of stores and turnover.
The group achieved a turnover of 10.5 billion pounds sterling for its financial year ending February 3, 2024, or around 14 billion euros. Courir and JD have a lifestyle positioning in common: they are fashion brands and not sports equipment manufacturers. Their success comes from the sportswear collections of the major brands that they market.
For example, JD presents itself as Nike's first customer. Regis Schultzformer boss of Monoprixhas been at the head of the British group for two years. He details the ambitions of JD Sports Fashion in Europe, and more particularly in France, as well as the priorities for Courir.
LSA – Why buy Courir?
Regis Schultz – First, it allows us to strengthen ourselves in Europe. Today we have around 7% market share in Europe and France, which is small compared to our positions in the United States and the United Kingdom. Courir is a key player in the sneaker market in Europe. The brand is one of the market leaders in France and France is the largest market for sneakers in Europe. Then, this allows us to expand our customer base. Courir’s clientele is more feminine and older than our core target and focused on shoes. The JD brand is aimed at young people aged 16-24, mainly men. JD's turnover is split 50-50 between textiles and shoes.
It was in France, in 2010, that the group opened its first store outside the United Kingdom. Is this an important market for you?
R.S. – Yes, France is our first market in Europe, excluding the United Kingdom of course. It is the European country where we have the most stores (140 points of sale). Last year, we invested 50 million euros in our French points of sale. Next year, we should open 10-15 stores in this territory. At the same time, we are expanding a certain number of points of sale which are currently too small. I think the potential is 200 stores in France.
The JD brand is the group's priority and where the majority of investments are made. Why continue to expand the group's portfolio?
R.S. – We have in our portfolio various local players that we have acquired over the years such as Sizeer in Eastern European countries, Sport Zone in Portugal or Sprinter in Spain. These local roots have provided us with infrastructures which have enabled us to accelerate the development of JD in these countries. There is, in addition, room for concepts complementary to JD. For example, in France, we are developing the Size? which has a more premium positioning.
What are your plans for Running?
R.S. – Courir is already present in several European countries but we have the infrastructure which allows us to better absorb the fixed costs linked to store openings and thus make its international expansion easier. Furthermore, we have a concept close to that of Running in Eastern Europe. We will benefit from the expertise of Pierre Chambaudrie, the CEO of Courir, and his team to develop this other concept.
This year, you also bought your competitor Hibbett in the United States. Are you going to pass on these approximately 1,160 stores under the JD brand?
R.S. – No because Hibbett has a strong reputation in the United States. Hibbett, like Courir, joins our “Complementary concepts” activity. We now need to consolidate these buybacks. We have no plans for further acquisitions in the short term. On the other hand, we will continue to expand our store base. We have set ourselves ambitious development objectives with turnover growth of 10% per year.
JD Sports Fashion in figures
- 4,541 stores, including more than 1,400 for the JD brand
- 10.5 billion pounds sterling in turnover for its financial year ending February 3, 2024
- A third of turnover generated in the United States, a third in Europe, a little less than a third in the United Kingdom and 5% in Asia-Pacific (mainly in Australia)
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