In recent news, JD, a French sportswear retailer led by Regis Schultz, has announced the acquisition of Hibbett, an American retailer listed on the New York Stock Exchange. This acquisition is seen as highly complementary to JD’s business as it strengthens their presence in communities across the south-eastern US where they currently have limited presence. The addition of Hibbett’s 1,000 stores will also provide JD with a stronger platform to introduce its brand in the US market.
JD’s move stands in contrast to the trend of American companies seeking deals on the UK stock market. Many recent takeovers, such as GXO Logistics’ acquisition of Wincanton and International Paper’s purchase of DS Smith, have involved American companies buying British listed firms. However, Hibbett is now part of JD’s acquisition strategy as they look to expand their reach in the US market.
With this acquisition, JD will double its number of sportswear stores in the US to 2,100. This growth is expected to increase JD’s share of US sales from 32% to 40%. The US market for sportswear is valued at $120 billion, making it the largest and most lucrative market globally. In comparison, the UK market is worth $10 billion in comparison. This move by JD highlights their commitment to expanding their business globally and tapping into new markets.