Regis Schultz, the French businessman leading JD, expressed that Hibbett’s footprint is highly complementary to JD’s existing presence, particularly in the south-eastern US where JD’s presence is limited. This acquisition will not only enhance JD’s presence in communities across the region but also provide a stronger platform for expanding the JD fascia in the US market.
The move by JD to acquire Hibbett in the US market goes against the trend of American investors seeking deals in the UK stock market. Many recent takeovers this year, such as GXO Logistics’ acquisition of Wincanton, International Paper’s purchase of DS Smith, and Spirent’s acquisition by Keysight, have seen Americans acquiring British-listed firms. Hibbett, listed on the New York Stock Exchange, will double JD’s US sportswear store count to 2,100, with over 1,000 stores coming from Hibbett’s collection. This acquisition will also increase JD’s US sales share from 32% to 40%.
The US market is the largest and most lucrative market for sportswear globally, valued at $120 billion. In comparison, the UK sportswear market is valued at $10 billion.JD’s acquisition of Hibbett will significantly boost its market presence and strengthen its position in the highly competitive sportswear industry in the US.