JD Sports Fashion forms JV for Korea

1 min readSep 18, 20175:50 AM

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British sportswear retailer JD Sports Fashion has formed a joint venture to enter the South Korean market.

It is partnering with footwear retailer Shoemarker and its J&S Partners unit, which trades as Hot-T . It has bought an initial 15 per cent of Hot-T fo r £ 5.5 million (US$7.4 million ) and has a call option to buy a further 35 per cent stake following the finalisation of Hot-T’s accounts for the year ending December 31.

JD said it intends to exercise the option and rebrand the Hot-T stores as JD, though the business will continue to be run by its existing management.

With 23 stores and a website, Hot-T had about £17.2 million in revenue last year.

JD executive chairman Peter Cowgill says the JV will further strengthen the company’s global presence, and gives it the opportunity to enter a market with more than 50 million people with a proven partner.

As well as the UK, JD has stores in Ireland, France and Spain.

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What this means

This joint venture is a shrewd, low-risk entry for JD Sports into a robust market, using Hot-T's 23 stores and £17.2 million revenue. Unlike Tiffany & Co.'s single flagship in Southeast Asia, this approach immediately establishes a significant retail footprint, pressuring sportswear competitors already operating in the region. The commitment to retain existing management mitigates operational risk, contrasting with outright acquisitions like Carlyle's of KFC Korea. This strategy positions JD for rapid brand conversion and market penetration, avoiding the slower organic growth often seen with new market entrants. The key indicator for JD's aggressive expansion will be the finalisation of Hot-T's accounts and the subsequent exercise of the call option.

Maria Santos · Retail News Asia newsroom

Questions & Answers

What is the initial investment JD Sports Fashion has made in the South Korean market?

JD Sports Fashion has initially invested £5.5 million (US$7.4 million) to acquire 15 per cent of Hot-T. This establishes their joint venture in the South Korean market.

Does JD Sports Fashion plan to take full control of Hot-T, and will the current management remain?

JD Sports Fashion intends to exercise a call option to buy a further 35 per cent stake in Hot-T. The business will continue to be run by its existing management, despite the rebranding of stores.

What was Hot-T's revenue last year, and how many stores does it currently operate?

Hot-T generated approximately £17.2 million in revenue last year. The South Korean business currently operates 23 stores and also maintains a website.

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