Britain’s biggest sportswear retailer JD Sports Fashion has entered markets in central and eastern Europe by agreeing to buy 60% of Poland’s Marketing Investment Group (MIG).
MIG, majority owned by brothers Andrzej and Zbigniew Grząka, operates 410 retail stores and associated websites across nine countries in central and eastern Europe.
“It gives JD a foothold in interesting growth markets, and we would expect flagship stores to follow in big cities,” said analysts at Peel Hunt.
Krakow-based MIG, which JD said generated revenue of about 200 million pounds in its 2019-20 financial year, sells sports fashion footwear, apparel and accessories from global brands primarily through the Sizeer and 50 Style retail chains.
Financial details of the deal were not disclosed, although JD said put and call options have been agreed to enable future exit opportunities for the sellers.
Peter Cowgill, JD’s executive chairman, said last month the group was seeking a distribution centre within the European Union to avoid having to pay post-Brexit tariffs.