British sportswear retail giant JD Sports is strengthening its foothold in the U.S.
The company has acquired San Jose, Calif.-based retailer Shoe Palace for $325 million, in a move it says will increase its appeal among Hispanic and Latino customers.
JD Sports first entered the U.S. market in 2018 by acquiring shoe and apparel retailer Finish Line for $558 million.
Founded in 1993, Shoe Palace has 167 stores across the U.S — the majority are in California. It’s operated by four brothers, who get a 20% stake in JD’s U.S. business in the deal.
The Mersho brothers will continue to manage Shoe Palace, but JD’s U.S. team will “share ideas and best practices” starting next year.
Shoe Palace’s revenue totaled $435 million last year, when the market for new sneakers in the U.S. was estimated to be worth more than $21 billion.
