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Daily Newsletter

09 August 2023

Daily Newsletter

JD Sports purchases remaining 40% stake in Poland-based MIG

JD had originally acquired a 60% stake in MIG in April 2021.

UK-based sportswear retailer JD Sports has purchased the remaining 40% minority stake in Polish retailer Marketing Investment Group (MIG), making it the sole owner.

The retailer had already acquired a 60% stake in MIG back in April 2021.

Since the initial acquisition, JD Sports created the JD fascias in five countries across Central and Eastern Europe, operating 18 JD stores.

In addition, MIG continues to trade through Sizeer and other complementary fascias, offering a wide range of sports footwear, apparel and equipment from leading global brands.

In the fiscal year ending 31 January 2023, the retailer generated approximately £270m ($343m) in revenue.

The deal is subject to customary competition approval by the European Commission and is expected to close by the fourth quarter of 2023.

Financial terms of the transaction have not been disclosed.

JD CEO Régis Schultz said: "Acquiring the remaining 40% stake in MIG allows us to accelerate the development of JD in Central and Eastern Europe, the strong foundations for which have been established alongside the outgoing shareholders.

“Increasing JD's presence in the region through new store openings and further investment in our omnichannel capabilities is a key part of the strategic growth plan set out at our Capital Markets Day presentation.

“The complementary Sizeer brand provides a strong platform for the MIG business and the JD brand has evidenced strong initial traction with the consumer, which we will continue to build upon. We look forward to closing the transaction and continuing an exciting journey with the local management team."

Last month, JD Sports revealed plans to acquire the remaining shares of Iberian Sports Retail Group (ISRG) for €500.1m ($544.9m).

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats. That said, growth will be held in check in the years ahead by the permanent erosion of disposable income from the heightened cost of living impacting demand for air travel. The duty-free market in the APAC region showed strong growth in 2022, as traveler numbers surged in response to the lifting of travel restrictions. To cater for rising demand in the region, many airports in the APAC area are expanding and modernizing, giving duty-free stores greater space that will allow them to attract more customers. The future of APAC duty-free retail is also being shaped by the adoption of technology. The rise in online shopping, mobile payments, and digital marketing are giving businesses new ways to connect with customers and improve the shopping experience.