Two Hip Stores to Close This Week
JD Sports has confirmed the closure of two Hip stores this week, with the Manchester branch on Thomas Street shutting on June 28 and the Leeds branch on Vicar Lane closing at the end of the month, according to Drapers. The closures are part of the company's strategy to scale back underperforming physical stores and focus on more popular locations and online trading.
West Midlands Not Affected
Customers in the West Midlands can breathe a sigh of relief as no Hip stores in the region are among those closing. JD Sports acquired the Hip brand in 2014 and has decided to discontinue its high street presence, though Hip will continue to operate online via its website.
Broader Store Reduction Strategy
Earlier this year, JD Sports was forced to shut 24 UK stores due to financial uncertainty. Globally, the company still operates 4,000 stores. The retailer plans to have "fewer, bigger and better" shops, cutting down on bricks-and-mortar sites to improve profitability.
US Expansion and Challenges
Last month, JD Sports announced it would close 175 Hibbett stores in the US over the next three years to focus on more profitable locations. The British retailer acquired Hibbett in 2024 for $1.1 billion as part of its US expansion. Over the past two years, JD Sports has faced tough competition from rivals like Dick's Sporting Goods, which bought Foot Locker for $2.5 billion.
Financial and Market Pressures
The company recently reported a drop in annual earnings and cited concerns that tensions in the Middle East could lead to higher costs and decreased customer interest. JD Sports stated there had been no "direct exposure" but "heightened uncertainty." The brand is focusing on online growth and streamlining its physical footprint to navigate these challenges.
