JD Sports Fashion (LSE:JD.) has signed a long-term franchise partnership with Grupo Axo, Mexico's leading multi-brand omni-channel retail distributor, to bring the JD brand into the country for the first time.
The global sports, fashion and outdoor retailer said the deal extends its existing US and Canada footprint, which made up 38% of group sales in the 52 weeks to 31 January, and marks a further step in its "JD Brand First" expansion strategy.
Under the agreement, Axo will operate JD stores and e-commerce in Mexico using JD's brand and intellectual property, drawing on its own-brand and exclusive product range across footwear, apparel and accessories.
Axo will convert more than 140 existing sneaker store premises to the JD brand starting in 2027, with key sites later upsized to JD's flagship "bigger and better" format.
JD pointed to Mexico's population of over 130 million, around 40% of whom are under 25, and cited industry estimates that the country's activewear market, currently valued at around $6.5 billion, could exceed $10 billion by 2034.
The tie-up adds to a franchise platform that already spans 75 JD and Courir stores across Europe, the Middle East, Africa and Asia.
"Axo is the ideal partner for JD in Mexico, with a 30-year track record of working with brands in the country," said chief executive Régis Schultz, adding that the group sees "a significant opportunity to lead the category" there.
Axo chairman and chief executive Andrés Gómez said the partnership marks "a significant moment for sports fashion in Mexico".
The first JD stores under the partnership are expected to open in 2027.
News Intelligence what this means for the company
JD Sports has secured a franchise partnership with Mexico's Grupo Axo to operate the JD brand across more than 140 converted stores starting in 2027, extending its North America footprint (which represents 38% of group sales) into a market with 130+ million people and an activewear sector estimated to grow from $6.5 billion to over $10 billion by 2034. The deal is capital-light for JD—Axo bears conversion and operating costs—but material revenue contribution lies years ahead, and the partnership adds to an existing franchise platform of 75 stores across other regions.
The Mexico entry fits JD's 'Brand First' expansion strategy and taps a large, young demographic in a growing activewear market, but the 2027 launch timeline and franchise model (where JD receives royalties rather than direct sales) mean near-term earnings impact is minimal. This is a strategic positioning move rather than a near-term profit driver.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
