Following today’s announcement that JD Sports is selling Footasylum to Aurelius Group for £37.5m;

Darcey Jupp, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view:

“Footasylum will be thankful it can now focus on revitalizing its proposition after a tumultuous period, but not being purchased by a sportswear specialist will be a shame for the troubled retailer. Footasylum struggled during the pandemic despite the athleisure boom, which was especially prominent among its young target audience, so it must now focus on how it will regain its place in the highly competitive UK sports footwear market.

“Retaining wholesale contracts with Nike and Adidas will be essential for Footasylum’s survival. As part of JD Sports Group, these deals would not have been under threat, but the separation leaves Footasylum exposed due to its small presence and lack of differentiation. Introducing emerging brands like Hoka and Veja could be an interesting way for Footasylum to stand out, but it must ensure there is sufficient demand for this among its existing consumer base, who often desire the latest hyped styles from the big brands.

“JD Sports is likely happy that this saga is now over, yet losing c£52.5m on Footasylum alongside its recent governance woes will certainly be disappointing. Nevertheless, JD Sports will continue to thrive in the global sportswear market after its stand-out performance last year, and it can now refocus its attention on its extensive existing portfolio of retailers.”