JD Sports explained

JD Sports should not be confused with JD.com.

JD Sports Fashion plc
Area Served:International
Type:Public limited company
Traded As:
FTSE 100 component
Founders:John Wardle
David Makin
Key People:Andy Higginson (Chairman)
Régis Schultz (Chief Executive Officer)
Industry:Retail
Products:Clothing
Sportswear Accessories
Revenue: £10,125.0 million (2023)[1]
Operating Income: £509.8 million (2023)
Net Income: £226.7 million (2023)
Location:Bury, Greater Manchester, England, UK
Locations:3,400 stores (31 July 2022)[2]
Owner:Pentland Group (55%)
Aberforth Partners (10%)
Fidelity Management (5%)
Peter Cowgill (CEO) (1%)
Other Minor Shareholders (29%)
Num Employees:51,297 (2023)

JD Sports Fashion plc, commonly known as JD Sports, JD or JD Group[3] is a British sports-fashion retail company based in Bury, Greater Manchester, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The Pentland Group owns 55% of the company.[4]

History

The company was established by John Wardle and David Makin (hence the name JD), trading from a single shop in Bury, Greater Manchester, in 1981.[5] The company opened a store in the Arndale Centre in Manchester in 1983. Pentland Group bought Wardle's and Makin's shares for £44.6M in May 2005,[6] so acquiring 45% of the business.[7]

Acquisitions

Early acquisitions of stores included 209 stores with the acquisition of First Sport from Blacks Leisure Group in December 2001[8] and 70 stores from the administrators of Allsports in October 2005. Subsequent acquisitions of businesses included:

In addition, the company acquired the rugby heritage brands 'Canterbury' and 'Canterbury of New Zealand' as well as 'The Duffer of St. George' and 'Kooga Rugby' brands.[38]

International operations

The company acquired Chausport, which operated 75 small stores in France, in May 2009. It opened its first store in Malaysia in January 2016.[39] The company acquired an 80% stake in the Australian retailer Next Athleisure for A$6.6 million in late 2016.[40] This was followed by the opening of more stores in Australia in April 2017,[41] in South Korea in April 2018,[42] in Singapore in May 2018[43] and in Thailand in November 2018.[44] The company also acquired 80% of Cosmos Sport, based in Crete, in December 2021[45] and has launched a joint venture in Indonesia with a store opened in 2022.[46] In August 2023, it was announced JD Sports had acquired the remaining 40% of shares in the Krakow-headquartered footwear and clothing retail chain, Marketing Investment Group. JD Sports acquired the first 60% in April 2021.[47] JD Sports opened its first store in Poland in December 2021.[48] In December 2023, Sports Unlimited Retail, JD Sports' Dutch subsidiary, was declared bankrupt.[49]

Sponsorship

JD Sports is the official supplier and sponsor of association football teams, players and associations. In August 2008, JD Sports announced sponsorship deals with AFC Bournemouth, Charlton Athletic, Dundee United, Blackpool, Luton Town & Oldham Athletic.[50]

Controversies

Mistreatment of staff

The company has been the subject of accusations of mistreatment of its UK warehouse staff, with comparisons being made to Victorian "dark satanic mills" and "prison" conditions in 2016 and 2019.[51] [52] [53]

Go Outdoors

The company pushed its subsidiary, Go Outdoors, into administration in June 2020.[54] It then bought it back from administrators with the creditors losing much of their money.[55]

Alleged breaches of competition law

The company along with Leicester City were placed under investigation by the Competition and Markets Authority (CMA) due to alleged breaches in competition law in September 2021. The investigation was in regard to anti-competitive agreements over the sale of club branded merchandise in the UK. Both JD Sports and Leicester City said they were 'fully cooperating' with the CMA.[56] [57] [58] [59]

Covert meetings between the Chief Executive Officers of JD Sports and Footasylum

After the company acquired Footasylum in March 2019, the CMA carried out an investigation and then, on the basis that the company's ownership of Footasylum might limit competition, ordered the company to dispose of Footasylum.[60] The company and, its subsidiary, Footasylum, were fined a combined £4.7 million after the CEO of JD Sports, Peter Cowgill, allegedly met covertly with the CEO of Footasylum, Barry Bown, on two occasions in July and August 2021 in breach of an order from the CMA not to exchange commercially sensitive information without CMA consent. One of the meetings was alleged to have taken place in a car park in Bury, Greater Manchester.[61] [62] [63]

Notes and References

  1. Web site: Annual Report 2023. JD Sports. 11 February 2024.
  2. Web site: JD Sports Total Number of Stores.
  3. Web site: New distribution warehouse, Rochdale. 28 February 2020.
  4. Web site: Pentland sells £177m stake in JD Sports. 12 December 2019. Drapers Online. 14 February 2022.
  5. News: JD Sports founder sells 11per cent stake to firm behind Speedo. The Daily Telegraph. 7 July 2004 . London . Rachel . Stevenson. 28 February 2020.
  6. News: JD Sports founders sell out for £44.6m. Times Online. 5 November 2007 . London.
  7. News: Finch . Julia . JD Sports founders cash in and quit with £45m . . 12 May 2005 . 2022-01-07 . https://web.archive.org/web/20211107175507/https://www.theguardian.com/business/2005/may/12/7 . 2021-11-07 . live.
  8. Book: The Marketing of Sport. 375. John . Beech . Simon . Chadwick. Financial Times International. 2006. 978-0-273-68826-6.
  9. News: John David Group makes a Bank statement. 11 December 2007. Yorkshire Post.
  10. Web site: JD Sports set to acquire Champion Sports for €20m. 26 January 2011. Irish Examiner. 28 February 2020.
  11. Web site: Blacks Leisure sold for £20m while La Senza finds buyer. BBC News. 9 January 2012. 28 February 2020.
  12. Web site: JD Sports acquires FLY53. Insider Media Limited. 15 February 2012. 28 February 2020.
  13. Web site: JD's Tessuti deal spells the end for Cecil Gee. 16 June 2012. Drapers on line. 28 February 2020.
  14. Web site: JD Sports Fashion acquires Cloggs. Manchester Evening News. 15 February 2013. 28 February 2020.
  15. Web site: Bearne. Suzanne. 13 May 2014. JD Sports Fashion invests in Leeds indie The Hip Store. 16 January 2022. Drapers. en.
  16. Web site: Men's Designer Clothes, Shoes & Accessories | Woodhouse . Woodhouseclothing.com . 9 October 2020.
  17. Web site: Brown Bag Clothing | Men's Cheap Designer Clothing . Bbclothing.co.uk . 27 January 2016 . 9 October 2020.
  18. Web site: Final Results â€" Company Announcement . Markets.ft.com . 11 April 2017 . 9 October 2020.
  19. Web site: Britain's JD Sports buys Go Outdoors for 112 million pounds. 28 November 2016. Reuters. 22 April 2017.
  20. News: UK Retailer JD Sports Fashion to Buy Finish Line for About $558 Million. Al-Muslim. Aisha. 26 March 2018. Wall Street Journal. 27 March 2018. en-US. 0099-9660.
  21. News: JD Sports hits the ground running with Finish Line takeover deal. https://web.archive.org/web/20110612020354/http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article521191.ece. 12 June 2011. Costello. Miles. 26 March 2018. The Times. 2 November 2019. en. 0140-0460.
  22. Web site: Trade mark number UK00002460933 - Event history . 4 November 2020 . trademarks.ipo.gov.uk . . 6 May 2024 . Full Assignment RC000162070 received on date 06/10/2020 has been recorded, resulting to the change of ownership from HMV (Brands) Limited (id: 588693, country: GB) to JD Sports Fashion Plc (id: 30760, company number: 01888425, country: GB). The effective date of assignment is 22/02/2019..
  23. News: JD Sports expresses fury over CMA's final ruling to sell Footasylum. 4 November 2021. Retail Gazette. 16 February 2022.
  24. News: 15 December 2020. JD Sports buys Shoe Palace for $325 million to expand U.S. footprint. en. Reuters. 15 December 2020.
  25. News: Retail Gazette . 18 March 2021. JJD Sports completes £360m acquisition of DTLR. en. RetailGazette. 18 March 2021.
  26. Web site: JD Sports now has a majority stake in Missy Empire . 16 January 2024 . Retail Gazette. 25 June 2021 .
  27. Web site: JD Sports acquires Deporvillage in Spain for £120m . 16 January 2024 . Retail Gazette. 28 June 2021 .
  28. Web site: JD Sports buys 80% stake in Greece's Cosmos Sport . 16 January 2024 . Retail Gazette. 22 October 2021 .
  29. Web site: JD Sports ramps up European expansion . 15 January 2024 . Drapers. 8 August 2023 .
  30. Web site: JD Sports to become sole owner of Polish retailer MIG . 15 January 2024 . Retail Gazette. 8 August 2023 .
  31. Web site: JD Sports Fashion conclut l'accord de rachat du français Courir . 15 January 2024 . Fashion Network.
  32. Web site: Rachat de Courir et de Gap : le britannique JD Sports confirme ses ambitions sur le marché français . 15 January 2024 . Challenges. 21 September 2023 .
  33. Web site: Le géant britannique JD Sports rachète Courir et Gap pour 520 millions d'euros . 15 January 2024 . Capital. 21 September 2023 .
  34. Web site: Le britannique JD Sports s'offre le français Courir, après avoir racheté Gap France . 15 January 2024 . La Tribune. 21 September 2023 .
  35. Web site: JD Sports completes acquisition of ISRG . 15 January 2024 . Fashion United. 11 October 2023 .
  36. Web site: JD Sports Make Splash With Spanish Acquisition . 15 January 2024 . Euro Weekly News. 11 October 2023 .
  37. Web site: JD Sports to buy US rival Hibbett for $1.08 billion . 23 April 2024 . Euro Weekly News. 23 April 2024.
  38. Web site: History. jdplc.com. https://web.archive.org/web/20120128235958/http://www.jdplc.com/history.html. 28 January 2012. 29 March 2015.
  39. Web site: JD Sports Fashion opens its first Malaysian outlet. Su. Reon. 28 January 2016. MAXIT. https://web.archive.org/web/20160215111059/http://www.maxit.my/2016/01/jd-sports-fashion-opens-its-first-malaysian-outlet/. 15 February 2016. live. 16 January 2019.
  40. Web site: 'King of trainers' JD Sports eye Perth market. Dagge. John. 6 July 2018. The West Australian. en. https://web.archive.org/web/20190116085557/https://thewest.com.au/news/wa/athleisure-giant-jd-sports-plans-to-step-into-perth-market-by-years-end-ng-b88888664z. 16 January 2019. live. 16 January 2019.
  41. Web site: JD Sports looks to unlock "athleisure" niche with Aussie store launch tomorrow. Powell. Dominic. 26 April 2017. SmartCompany. https://web.archive.org/web/20190116085335/https://www.smartcompany.com.au/industries/retail/jd-sports-looks-unlock-athleisure-niche-aussie-store-launch-tomorrow/. 16 January 2019. live. 16 January 2019.
  42. Web site: JD Sports to open first store in South Korea. 26 March 2018.
  43. Web site: Sneakerheads rejoice, Singapore will have not one but two JD outlets with the first already opened in Jurong. Tan. Dylan. 30 May 2018. Business Insider Singapore. https://web.archive.org/web/20190116132523/https://www.businessinsider.sg/jd-sneakerhead-hypebeast-nike-puma-adidas/. 16 January 2019. live. 16 January 2019.
  44. Web site: JD Sports to open first store in Thailand at Iconsiam. 17 October 2018. The Nation. https://web.archive.org/web/20181017124735/http://www.nationmultimedia.com/detail/business/30356617. 17 October 2018. live. 16 January 2019.
  45. News: Riaz . Saleha . JD Sports buys 80% stake in Greece's Cosmos Sports . Yahoo Finance . 22 October 2021.
  46. Web site: Erajaya Active Lifestyle Announces A Joint Venture with JD Sports Fashion plc. 26 August 2021. Erajaya Active Lifestyle Announces A Joint Venture with JD Sports Fashion plc. en-US.
  47. Web site: 2023-08-08 . JD Sports acquires remaining 40% stake in Polish business to accelerate expansion TheBusinessDesk.com . 2023-08-08 . North West . en.
  48. Web site: a_gracjan . 2021-12-17 . JD Sports otwiera swój pierwszy sklep w Polsce! . 2024-03-18 . THE ILLEST . pl-PL.
  49. Web site: Goldfingle . Gemma . 2023-12-07 . JD Sports' Dutch business Sports Unlimited declared bankrupt . 2023-12-09 . www.retailgazette.co.uk . en-GB.
  50. Web site: Oldham Athletic announce JD Sports Carbrini sponsor deal. 6 August 2008. Football Shirt Culture. 14 February 2022.
  51. News: 14 December 2016. 'Prison' conditions at JD Sports: undercover investigation. Channel 4 News. 28 February 2020.
  52. News: 7 May 2019. JD Sports and Asos warehouses like 'dark satanic mills'. BBC. 28 February 2020.
  53. News: 9 May 2019. JD Sports and Asos warehouses compared to 'dark satanic mills' amid concerns over working conditions. The Independent. 28 February 2020.
  54. Web site: 21 June 2020. JD Sports' Go Outdoors brand likely to enter administration in days. 22 June 2020. The Guardian.
  55. Web site: JD Sports buys back Go Outdoors after pushing it into administration. 23 June 2020. Sky News. 25 February 2021.
  56. News: Suspected anti-competitive behaviour in relation to the sale of Leicester City FC-branded products and merchandise. 30 September 2021. Competition and Markets Authority. 1 October 2021.
  57. News: Leicester City and JD Sports merchandise probe. 30 September 2021. BBC. 1 October 2021.
  58. News: Watchdog launches probe into Leicester City and JD Sports over merchandise. Saker-Clarke. Henry. 30 September 2021. Independent. 1 October 2021.
  59. News: Leicester City and JD Sports probed by watchdog over merchandise. Hardy. Matt. 30 September 2021. City AM. 1 October 2021.
  60. News: JD Sports close to losing ownership of Footasylum. 13 December 2021. Retail Gazette. 15 February 2022.
  61. News: Britain fines JD Sports, Footasylum as CEO meetings breach order. 14 February 2022. Reuters. 15 February 2022.
  62. News: JD Sports and Footasylum fined £4.7m for secret meetings. 14 February 2022. Sky News. 15 February 2022.
  63. News: JD Sports and Footasylum fined £5m for breaching CMA order after covert car park meeting. 14 February 2022. Retail Gazette. 15 February 2022.

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