How JD Sports Is Winning the U.S. Athletic Footwear Market

JD Sports has become the largest athletic footwear retailer in the United States, generating roughly $5 billion in North American revenue - 40% of its total sales - through brands Finish Line, Shoe Palace, and JD. CEO Regis Schultz tells Phil Wahba the company plans to nearly double its U.S. store count from 400 to 800.

U.S. Sports Retail: Trends and Opportunities

JD Sports entered the U.S. in 2018 by acquiring Finish Line, a struggling business at the time. Over seven years, the company grew it into a $6 billion business, becoming the largest athletic footwear retailer in the country.

One key trend driving growth is sneaker casualization. Sneakers have become everyday shoes, representing around 60% of the U.S. footwear market. Schultz explains that once consumers adopt sneakers, they rarely return to formal shoes, making sneakers both a fashion and comfort choice.

Understanding the JD Customer

JD Sports targets a youth-focused demographic, emphasizing style and culture. "We are not just a retailer. We curate products and colors in partnership with brands like Nike, Adidas, and New Balance," says Schultz. Around 50% of the products sold through JD are exclusive designs, giving the retailer a unique point of view in the market.

The company also plans to expand its U.S. footprint. Schultz estimates JD could eventually operate around 800 stores, currently standing at 400, with many Finish Line locations in conversion.

The "Theater of Retail"

JD Sports' stores aim to create an engaging experience. With locations averaging 8,000 square feet, the retailer invests heavily in visual merchandising and hires staff that reflect the community and customer. This approach drives higher store performance compared to competitors.

Schultz emphasizes: "It is not enough to have products on the wall. You need a point of view. You need to understand your consumer and curate what they want."

Embracing Technology and AI

JD Sports is leveraging AI to enhance the customer experience. From AI chatbots to virtual product visualization, the company seeks to simplify the shopping journey. "Our goal is to interact with customers wherever they are and add value at every step," Schultz explains.

This innovation ensures JD stays relevant in a rapidly evolving retail landscape.

Balancing Fashion, Value, and Accessibility

Pricing remains a key consideration. Schultz notes that most sneakers remain affordable, typically between $100 and $150, offering value while maintaining fashion relevance. The company focuses on athletic leisure, the intersection of sport and fashion, rather than highly technical sports products that appeal to a smaller niche.

"Our main market is sport-inspired products you wear every day. We curate the look from head to toe," Schultz says.

Conclusion

JD Sports' U.S. success comes from a combination of curated products, engaging stores, and innovative technology. By understanding the customer, focusing on youth culture, and expanding thoughtfully, JD continues to carve out a dominant position in the athletic footwear and sports fashion market.