Another international sports network has been launched in Israel. The MGS Group, owned by Gideon Molyub, has opened the first two stores of the British JD Sports chain in Israel.
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The MGS Group plans to open 50-40 stores in Israel, with 7 stores opening at the end of 2022 with a total investment of NIS 40 million, as well as an online sales site and an app. The first two JD stores were established in Rishon Lezion and Duty Free at Ben Gurion Airport. The size of the first store is about 1,300 square meters and NIS 7 million was invested in it. NIS 5 million has been invested in the Duty Free store and it includes 700 square meters. Additional stores will be opened in Zion Square in Jerusalem, Big Beer Sheva and Rishonim Mall.
The chain will sell sportswear and footwear collections for women, men and children, from premium brands such as Hugo Boss and CK alongside sports brands such as Nike and Adidas. The sports brands have created collections unique to JD, as they do for leading sports chains, such as Pot Locker.
MGS and the British JD Group will jointly hold the venture, with the global company controlling and holding 60% of the joint venture and MGS 40%.
JD Sports is a British retailer specializing in sportswear for women, men and children, and markets international brands such as Nike and Adidas, alongside private labels. The chain has about 3,000 stores and with some of the brands it has agreements for exclusive models. Among other things, it markets items and sportswear from leading football and basketball teams like the Chicago Bulls.
The chain belongs to the JD concern, which operates 16 retail chains that specialize in sportswear and footwear and outdoor products, and in 2021 had a turnover of over £ 6 billion. 25% of the group’s sales come from online. “In JD, unlike competing chains, 70% “30% is footwear,” said Manor Sasson, the chain’s CEO. “JD in the world has different store formats. In Israel, stores with a size of 800-400 square meters have been opened.”
How do you compete with strong sports chains like Pot Locker?
“One of the things that sets us apart is the unique collections with the international brands. It is expressed in the shop-shop formats of the brands in the stores. I do not think there is a format with a similar mix in Israel. It is difficult to point to competition.”
You are not afraid of cannibalizing Mega Sports and the rest of the team’s networks?
“No. We are different in terms of positioning, and stores will not have the same products that JD has.”
Assuming the cake has not grown, who will be harmed?
“I know how to generate sales. Where do we get them from? It bothers me less.”
JD store at Ben Gurion Airport. “Unlike competitors, 70% in the network is fashion and only 30% footwear”