FTSE 100 sportswear retailer has reached an agreement with Axo as it looks to diversify beyond its struggling North American market
The Mexican flag flies during Mexico’s Independence Day celebration on September 15, 2026(Image: Getty Images)
JD Sports has unveiled plans to launch more than 140 stores in Mexico, as the ‘King of Trainers’ seeks to reverse declining sales and put a recent boardroom dispute behind it.
The FTSE 100 retailer revealed it has struck an agreement with Axo, a Mexico-based retail distributor, to run its outlets across the country.
JD Sports will be hoping the expansion can stem the sales decline it is experiencing in its vital North American market. The region currently represents 38 per cent of its worldwide revenue, but sales there dropped by 6.8 per cent in the three months to August.
Under the arrangement, Axo will manage JD’s physical stores and online operations using its brand and intellectual property, with the footwear and sportswear retailer set to deliver a “differentiated proposition” to Mexican consumers.
The FTSE 100 company sees significant opportunity in the Mexican market, informing shareholders that approximately 40 per cent of its 130 million population is under the age of 25, as reported by City AM.
“Mexico is a market with a large, highly engaged consumer base and a demographic profile which aligns strongly with JD’s unique position as a curator of footwear and apparel trends across sport, music and fashion,” the group stated.
The nation’s activewear sector is currently worth around $6.5 billion and is forecast to reach $10 billion by 2034, according to JD. Régis Schultz, JD’s chief executive, said: “JD’s product offering aligns closely with consumer demand in Mexico and we believe our position at the intersection of sport, music and fashion will deepen the connection we have with that consumer.”
Schultz added that Axo’s “deep market expertise, strong operational platform and proven experience with leading international brands make it uniquely placed to help deliver the JD proposition in Mexico and unlock the opportunity that exists there”.
The retailer is set to begin launching its more than 140 Mexican stores next year, with the group subsequently planning to upgrade its top-performing locations, in keeping with its “bigger and better” flagship store strategy.
JD’s partnership with Axo represents the latest step in the expansion of its global franchise platform. Across JD and Courir, the French trainer retailer it acquired in 2024, the group now operates 75 franchise stores spanning Europe, the Middle East, Africa and Asia.
The so-called ‘King of Trainers’ is entering the Mexican market during a turbulent period, following a profit warning and a boardroom succession dispute.
Régis Schultz, chief executive of JD Sports
Last month, JD cut its upper profit forecast by £50m to £800m, cautioning that sluggish US sales and aggressive discounting from competitors are posing a significant threat to its growth trajectory. “The market stayed highly promotional, reflecting the consumer and footwear product cycle headwinds our industry has faced in recent quarters, whilst our core consumer was impacted by incremental cost-of-living pressures,” Schultz said.
The retailer’s chief executive only narrowly survived an attempt to remove him from his position earlier this year, when JD chairman Andy Higginson stepped down from the group’s board after failing to persuade it to remove Schultz.
In August, JD appointed former Ikea chief executive Peter Agnefjäll to take over from Higginson.
You must be logged in to post a comment Login