JD Sports, a leading sportswear retailer in the United Kingdom, has made a strategic move by acquiring its American counterpart, Hibbett, for an impressive $1.1 billion (£878 million). This acquisition is expected to catalyze JD’s growth in the vast North American sportswear market.
The acquisition of Hibbett will significantly expand JD’s footprint in the United States, as Hibbett boasts a robust network of 1,169 stores strategically located across 36 states. This expanded presence will provide JD with access to a broader customer base and strengthen its position in the competitive US market.
Moreover, the acquisition will enable JD to leverage Hibbett’s established relationships with major sportswear suppliers such as Adidas and Nike. These partnerships will be instrumental in driving growth and enhancing JD’s product offerings in the US.
Financially, the deal is projected to have a positive impact on JD’s earnings within the first year of acquisition. JD anticipates extracting substantial cost synergies of at least £20 million annually from Hibbett’s operations.
JD’s CEO, Regis Schultz, expressed optimism about the acquisition, emphasizing its potential to accelerate the company’s growth trajectory in the US. He highlighted Hibbett’s complementary store footprint, which will augment JD’s presence in the southeastern United States, a region where JD currently has a limited presence. Schultz also emphasized the enhanced platform the acquisition provides for the rollout of the JD fascia in the US, further solidifying the company’s brand presence in the American market.
The acquisition of Hibbett is a significant milestone in JD Sports’ global expansion strategy. By combining its existing US operations with Hibbett’s extensive network, JD will generate a combined revenue of £4.7 billion from North America. This strategic move will effectively increase the contribution of US sales to JD’s overall group sales from 32 percent to approximately 40 percent, underscoring the importance of the American market to JD’s future growth.
