British sportswear retailer JD Sports is poised to expand into Mexico next year after negotiating a long-term franchise with Mexican fashion retailer Grupo Axo, betting on high demand from the country’s growing young population.

Under the agreement, Axo will operate JD stores and e-commerce in Mexico, managing the JD brand and intellectual property, while both companies will leverage JD’s own brand and unique product portfolio in footwear, clothing and accessories.

Betting on strong demand from Mexico’s growing young population, JD also plans to expand stores in key locations over time.

“This initiative represents another significant step in the ongoing execution of the group’s ‘JD Brand First’ strategy to enter one of the world’s most dynamic and youthful consumer markets,” JD said in a statement.

Axo will also leverage JD’s portfolio of private-label and exclusive products “to offer a differentiated proposition to Mexican consumers in the footwear, apparel and accessories categories.”

In the statement, JD noted that Mexico’s population of over 130 million — roughly 40% of whom are under 25 — has a sportswear market valued at around US $6.5 billion, a market that is projected to grow to over US $10 billion by 2034.

“Mexico is a market with a large and highly engaged consumer base, and a demographic profile that closely aligns with JD’s unique position as a trendsetter in footwear and apparel across the sports, music and fashion sectors,” JD said.

JD CEO Régis Schultz described the agreement as “an exciting milestone,” adding that “our position at the intersection of sports, music and fashion will deepen our connection with consumers.”

Schultz described Axo as “an ideal partner,” touting its “30-year track record of working with brands [in Mexico],” its deep market knowledge and robust operating platform.

Axo President and CEO Andrés Gómez highlighted JD’s brand relationships, differentiated product catalog and immersive retail experience as elements that will be incorporated into Axo’s commercial capabilities.

“This collaboration represents a significant moment for sportswear in Mexico,” he said.

For the Mexican consumer, the arrival introduces another major competitor in a category already dominated by flagship stores of large brands (such as Nike and Adidas), specialty chains (such as Grupo Martí and Innvictus), department stores and marketplaces. 

With reports from Reuters, Forbes México, Informa BTL and Fashion Network