JD Sports announces plan to open 250 to 350 new stores a year

JD Sports Fashion Plc has announced a range of key objectives the group will be looking towards over the next five years, including a significant retail expansion plan and new financial growth goals.

The plan was unveiled as part of the company’s Capital Markets Event today, during which CEO Régis Schultz will provide information to analysts and investors on the strategic approach the group will be taking and how it plans to “enhance its position as the leading global sports-fashion specialist”.

Among its objectives, JD is looking to hit double-digit revenue growth, as well as a double-digit operating margin and market share in key regions.

Additionally, the group is aiming for a capital expenditure of 500 million to 600 million pounds per annum, with 50 to 60 percent of spend set to be focused on store expansion in underpenetrated markets.

As part of this plan, the filing noted the company is aiming to open 250 to 350 new JD stores per year.

Next to this, JD said it is expecting a cash generation from operating activities of one billion pounds per annum.

International expansion to focus on North America and European markets

Speaking on the strategy, Schultz said in the regulatory filing: "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."

It comes after the retail group recently offloaded 15 premium fashion brands it had stakes in through a takeover deal with Mike Ashley’s Frasers Group.

The move was the result of a strategic review by JD Sports, in which Schultz concluded that its efforts were best centred around its global sports fashion businesses.

Through the restructuring, JD set out to put all of its attention on the international and digital expansion of its core premium sports fashion labels, which include JD Sports itself, as well as Size?, Foot Patrol and Shoe Palace, among others.