JD Sports to Launch in Mexico With 140-Store Axo Franchise

JD Sports Fashion will enter Mexico through a long-term franchise deal with Grupo Axo, with more than 140 JD locations planned from 2027. Announced September 21, the agreement also puts Axo in charge of JD’s Mexican online business.

Axo will use its existing sneaker-store network to establish the brand, rather than build a separate retail estate from scratch. The partners will sell footwear, clothing and accessories, including JD’s own-brand and exclusive products.

JD said about 40 locations are expected to be expanded over time into its larger “bigger and better” format. The company has not announced a store-by-store rollout schedule.

The deal adds a large new market to JD’s franchise strategy. As of August 1, JD had 50 branded franchise stores; JD and its Courir brand together had 75 across Europe, the Middle East, Africa and Asia.

Mexico has more than 130 million people, and around 40% are under 25, JD said. The retailer cited an estimate that the country’s activewear market is worth about $6.5 billion and could exceed $10 billion by 2034.

Axo brings an established local platform. The company says it has operated for more than 30 years and runs over 1,000 stores across Mexico, Chile, Peru and Uruguay, alongside online and wholesale businesses.

The expansion comes as JD faces weaker trading at home in North America. In results released September 23, it reported revenue of £5.899 billion for the 26 weeks ended August 1, down from £5.940 billion a year earlier. Profit before tax and adjusting items fell to £282 million from £351 million.

The next test is how quickly Axo can introduce JD across its existing sites and build online sales. The agreement gives JD access to Mexico through a local operator, while Axo will run the stores and e-commerce using JD’s brand and products.