JD Sports has shut 13 stores in the UK over the past six months due to falling sales and strained consumer finances. In fact, the sportswear retailer operates 412 outlets across Britain but plans to close 50 branches globally. Consequently, weaker like-for-like sales and profits marked the previous half-year, as reported in its September trading update.
Like-for-like sales fell 2.5% to £5.94 billion over the 26 weeks ending August 2. However, organic sales rose 2.7%, while total sales surged 18% thanks to acquisitions of the Hibbert and Courir brands. Despite these gains, the North American division saw like-for-like sales drop 3.8%, and the UK operation declined 3.3%.
Chief executive Regis Schultz said the company delivered organic growth despite tough conditions. He explained that JD Sports’ resilience stems from its agile multi-brand model, broad geographic reach, and strong customer connections. Moreover, the company emphasized controlling costs and cash flow while maintaining operational and financial discipline.
The retailer noted that the UK sales decline was partly due to tough prior-year comparisons from the Euro 2024 football tournament. Replica football shirts, in particular, were affected during this period. Additionally, adjusted pre-tax profits fell 13.5% to £351 million over the half-year, which the company said aligns with guidance and keeps it on track for annual targets.
UK operating profits before adjusting items and lease interest fell 6.2%. Rising labor costs, property expenses, and investments in technology and cyber resilience contributed to this decline. Despite these challenges, JD Sports continues to operate a global network of 4,872 stores across 36 countries.
In June, the retailer opened a new flagship outlet at Manchester’s Trafford Centre. Analysts remain uncertain whether the weaker demand represents a cyclical downturn or a structural trend. Still, a weak economic backdrop adds pressure. Young consumers, who are the chain’s core demographic, may not face mortgages or nursery fees but still have less disposable income.
Overall, JD Sports UK store closures reflect both external pressures and the company’s effort to adapt to evolving consumer spending patterns. While challenges persist, the chain aims to maintain profitability and navigate a complex retail environment.
