JD Sports has announced it aims to spend 50% to 60% of its yearly capital expenditure to expand the brand internationally over the next five years, especially in the North American and European markets.

JD Sports Cologne

JD Sports is targeting store expansion in the US and Europe

In its capital markets event, the sportswear retailer said it aims to spend more than half of its £500m to £600m capital expenditure per annum on store expansions in the two regions.

JD plans to open 250 to 300 new stores per year as a part of this five-year growth plan.

Referring to the retailer’s “triple double-digit growth strategy”, Régis Schultz, new chief executive of JD Sports, said the brand aims to reach double-digit revenue growth, double-digit operating margin per year and double-digit market share in key regions over the next five years. 

JD Sports is aiming to increase its cash generation from operating activities to £1bn per annum as a result of global expansion. 

Schultz said that collaborations and partnerships with brands such as Nike and Adidas are “critical to JD’s growth plan to become the leading sports fashion powerhouse”. 

Going ahead, the sportswear retailer wants to put JD first, by going “beyond the physical retail” and focusing on “complementary concepts” and “people, partners and communities”.

Schultz said: “Today marks a new distinct chapter in the growth story of JD as we set out 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.”

Schultz joined JD in August last year after executive chair Peter Cowgill exited the business in May 2022. 

Cowgill’s role was split in two as JD Sports appointed Andrew Higginson as the new chair and Schultz as the chief executive later in the year.

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