- JD Sports hosted a “capital markets day” this past week where they provided an update on the brand's business strategy. This includes an acceleration of store openings and conversions (from Finish Line) in the U.S. with a long-term target of 637-737 locations (compared to 137 today), and at a rate of 150+ locations per year. As a reminder, JD Sports brought in a new CEO last September (Regis Schultz) and this expansion is part of his vision for the next five years.
- JD’s U.S. locations average 5,700 square feet and produce around $526 in sales per square foot. By contrast, Foot Locker locations produce $900. JD intends to drive its sales productivity higher by expanding its apparel assortment and putting an intense focus on its age 16-24 core consumer (see Under Armour’s comments below). It is also seeking a larger store for its new locations.
- Of note, JD isn’t targeting Asia. In fact, the brand is shutting down in Korea, as it sees the U.S. and Europe as offering better risk-adjusted returns. Global brands turning their gunsights on the U.S. consumer and U.S. retail was one of our big themes of 2022.
Source: JD Sports Capital Markets Presentation (Feb. 2, 2023)