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This article first appeared in our sister publication\u00a0Shop Eat Surf Outdoor (SESO)<\/em><\/p>\n Since entering the U.S. market in 2018,\u00a0JD Sports<\/strong>\u00a0has transformed from a newcomer into a\u00a0$6 billion<\/strong>\u00a0player in the region by acquiring\u00a0Finish Line<\/strong>,\u00a0Hibbett Sports<\/strong>,\u00a0Shoe Palace<\/strong>\u00a0and\u00a0DTLR<\/strong>.<\/p>\n With several years in the U.S. market under his belt, R\u00e9gis Schultz, the CEO of UK-based\u00a0JD Group, offered a candid assessment of the American retail landscape in a talk with\u00a0Fortune<\/em>\u2019s Phil Wahba at the NRF Big Show in January.<\/p>\n His diagnosis? For too long, U.S. retail buyers have been passive, functioning more as supply chain endpoints than curators of culture.<\/p>\n When\u00a0JD Sports\u00a0acquired Finish Line\u00a0in 2018, Schultz said he and his team encountered a buying culture that was fundamentally different from their operations in the UK. According to Schultz, the traditional U.S. buyer wasn\u2019t really buying at all \u2014 they were merely receiving.<\/p>\n \u201cOur big surprise in the U.S. was that we felt that the market and especially the team were not buyers,\u201d Schultz explained. \u201cThey just were people that take the input from the brand and put that in the store.\u201d<\/p>\n For JD Sports, this passive approach was a non-starter. Schultz insists that a retailer must have a perspective to survive. It isn\u2019t enough to simply be a \u201cdoor\u201d for major brands like\u00a0Nike<\/strong>\u00a0or\u00a0Adidas<\/strong>\u00a0to push their inventory through. If a retailer acts only as a logistics partner, they become obsolete the moment a brand decides to go direct-to-consumer.<\/p>\n \u201cYou need to have a point of view,\u201d Schultz said. \u201cYou need to say this is the key seller. This is the color of the month. This is the way we want to do things.\u201d<\/p>\n This philosophy has fundamentally shifted how JD Sports operates its acquired American banners. By retraining teams on merchandising and empowering them to curate offers based on consumer insights rather than brand mandates, JD has earned the respect of the industry\u2019s giants, Schultz said. He also noted that even\u00a0Nike CEO Elliott Hill\u00a0has acknowledged JD\u2019s understanding of the customer, telling the retailer, \u201cYou know the consumers better than we know them. Please give us the insight.\u201d<\/p>\n Schultz described the typical American footwear shop as uninspired: \u201cA long wall with plenty of shoes\u2026 and guess what, there is no story.\u201d<\/p>\n In contrast, Schultz said JD Sports treats its physical locations as \u201ctheaters.\u201d The goal is to create energy and excitement that digital channels cannot replicate. This involves significant investment in visual merchandising and hiring staff who authentically represent the customer base.<\/p>\n \u201cOur store looks modern, they have energy, it\u2019s a theater,\u201d Schultz said. \u201cIt\u2019s a very different experience for the consumer.\u201d<\/p>\n Driving JD Sports\u2019 growth is\u00a0a macro trend Schultz calls the \u201ccasualization\u201d of fashion.\u00a0Sneakers are no longer just for the gym; they are the dominant footwear for daily life.<\/p>\n \u201cSneaker is becoming the shoe,\u201d Schultz noted, pointing out that sneakers have moved from\u00a030%<\/strong>\u00a0of the global footwear market to around\u00a050%<\/strong>, with the U.S. sitting even higher at\u00a060%<\/strong>.<\/p>\n However, Schultz is careful to distinguish JD\u2019s lane. The company is not chasing the hyper-technical runner who needs carbon-plated shoes for a marathon \u2014 a niche market he believes is best served by specialty retailers or direct brand sales. Instead, JD focuses on \u201cathletic leisure.\u201d<\/p>\n This is the sweet spot where sport meets fashion. It\u2019s about the \u201chead-to-toe look,\u201d where a customer buys a pair of\u00a0New Balance<\/strong>\u00a0or Nikes not to run a 5K, but to look good while hanging out with friends. By focusing on this fashion-forward consumer, JD avoids the pitfalls of technical obsolescence and leans into trends like retro basketball and retro running styles.<\/p>\n JD Sports\u2019 U.S. strategy hasn\u2019t just been organic; it has been\u00a0fueled by a \u201cbuy-and-build\u201d approach.\u00a0<\/strong>Since 2018, the self-proclaimed \u201cKing of Trainers\u201d has grown from a virtual unknown in the U.S. to an industry player by strategically acquiring major regional retailers \u2014 including Finish Line, Shoe Palace, DTLR and, most recently, Hibbett.<\/p>\n The acquisition of Finish Line in 2018 put JD on the map nationwide; Shoe Palace (2020) provided reach and cultural connection on the West Coast; DTLR (2021) deepened roots in urban and community-focused streetwear on the East Coast and Mid-Atlantic; and the Hibbett deal (2024) brought more than\u00a01,100<\/strong>\u00a0neighborhood-focused stores largely in the Southeast and Midwest into the fold.<\/p>\n However, Schultz emphasizes that they don\u2019t simply \u201cJD-ify\u201d every brand they buy. While most Finish Line stores will be converted to JD locations, the other banners are largely remaining intact.<\/p>\n Schultz argues against the common industry mistake of consolidating buying teams to save money. \u201cThe worst thing which has been done in our industry is to say, \u2018I keep two brands and have one buying team,\u2019\u201d he said. \u201cIt doesn\u2019t make sense because you need to have some things that look different for the consumer.\u201d<\/p>\n JD Sports is in the process of converting many Finish Line stores to the JD banner. Currently there are approximately\u00a0400<\/strong>\u00a0JD Sports stores in the U.S. with about\u00a0120<\/strong>\u00a0more Finish Line stores to be converted. In this case, JD does use one buying team because the stores are changing to JD Sports banners.<\/p>\n But they maintain separate buying teams for brands like Shoe Palace and Hibbett to ensure the product mix remains relevant to those specific demographics.<\/p>\n Like every major retailer, JD Sports is integrating artificial intelligence, but Schultz views AI as a tool for seamlessness rather than just a buzzword. The company recently announced new AI tools designed to streamline the customer journey, ensuring that if a shopper starts a conversation with an AI chatbot, they can finish the transaction there without being bounced to a different channel.<\/p>\n Beyond efficiency, Schultz sees AI as a way to enhance the \u201ccool\u201d factor of the shopping experience. He envisions tools that allow customers to take a picture of a shoe in-store and instantly visualize how it matches with items they bought\u00a010<\/strong>\u00a0days ago, or how it fits into their existing wardrobe.<\/p>\n \u201cIt\u2019s all about being part of the journey to test, to learn and to build the partnership with those technology providers,\u201d Schultz said.<\/p>\n He views this technological adoption as a survival mechanism. If retailers don\u2019t stay relevant and add value to the consumer, they risk being cut out of the equation by brands and technology alike, he said.<\/p>\n<\/p><\/div>\n![\"RTP](\"https:\/\/no-cache.hubspot.com\/cta\/default\/23836458\/interactive-207998848949.png\")
<\/div>\n<\/div>\nRetailers Need a Perspective to Survive<\/strong><\/h2>\n
The Theater of Retail<\/strong><\/h2>\n
Understanding the \u2018Sneakerization\u2019 of Fashion<\/strong><\/h2>\n
A Varied Approach to M&A and Expansion<\/strong><\/h2>\n
Keeping Buying Teams Separate<\/strong><\/h2>\n
AI and the Future of Customer Interaction<\/strong><\/h2>\n