Contents

About JD Sports.............................................................................................................................................2
CHAPTER 2..................................................................................................................................................4
CHAPTER 3..................................................................................................................................................6
CHAPTER 4..................................................................................................................................................9
CHAPTER 5................................................................................................................................................11
CHAPTER 6................................................................................................................................................13
CHAPTER 7................................................................................................................................................17
 About JD Sports

JD Sports is a renowned sports-fashion retail company based in the United Kingdom, and it has
achieved significant global prominence in recent years. The company is known for its
specialization in athletic and casual footwear and apparel, as well as its strong presence in the
streetwear and sneaker culture. In this article, I'll provide an overview of JD Sports, including its
history, key features, business model, global expansion, and its impact on the retail industry.
History:
JD Sports was founded in 1981 by John Wardle and David Makin in Bury, Greater Manchester,
UK. Initially, the company was called "John David Sports," and it primarily focused on sports
and fitness footwear. Over the years, JD Sports expanded its product range to include clothing
and accessories, evolving into a sports-fashion retailer. The company's commitment to offering
leading brands and stylish sportswear helped it grow rapidly.
JD Sports carries a diverse portfolio of athletic and fashion brands, making it a one-stop shop for
customers looking for sneakers, sportswear, and trendy streetwear. They partner with major
brands like Nike, Adidas, Puma, Converse, Vans, and many others.
JD Sports is well-known for its exclusive sneaker releases and collaborations with major brands.
These limited-edition releases generate significant excitement and demand among sneaker
enthusiasts.
Beyond sports apparel, JD Sports offers a wide range of streetwear, including clothing and
accessories from popular urban fashion brands. This diversification appeals to a broader
customer base.
JD Sports operates a vast network of physical stores across the UK and internationally. They
also maintain a robust online presence, allowing customers to shop conveniently from anywhere
in the world.
JD Sports has a strong connection to youth culture and street style, often collaborating with
influencers and celebrities to stay on-trend. Its marketing campaigns resonate with younger
consumers.
The company has expanded beyond the UK, establishing a presence in Europe, North America,
Asia, and Australia through acquisitions and partnerships. JD Sports has become a recognizable
name in the global sportswear market.
Business Model:
JD Sports' business model revolves around curating an extensive range of sports and fashion
products, catering to various tastes and preferences. Its success is built on the following key
strategies:
 1. Exclusive Partnerships: JD Sports secures exclusive partnerships and limited releases
with major brands, creating a sense of urgency and exclusivity among customers.
2. In-Store Experience: Physical JD Sports stores offer a vibrant, interactive shopping
experience, with visually appealing displays and well-trained staff to assist customers.
3. E-commerce and Mobile Apps: The company's e-commerce platform and mobile apps
provide a convenient shopping experience for online customers, allowing them to explore
products and make purchases from the comfort of their homes.
4. Global Expansion: JD Sports has actively pursued international expansion through
acquisitions of local sportswear retailers, which has helped it gain a foothold in various
markets.
Global Expansion:
JD Sports' global expansion has been a significant driver of its success. The company has made
strategic acquisitions and partnerships in multiple countries, leading to an extensive international
presence. Some of its notable expansions include:
1. Europe: JD Sports has established a strong presence in Europe, with stores in countries
like Spain, France, Italy, and the Netherlands.
2. North America: The acquisition of Finish Line in the United States marked a significant
move into the North American market, where JD Sports now operates under the Finish
Line brand.
3. Asia: JD Sports has also expanded its footprint in Asia, with stores in countries like
Malaysia and Singapore, catering to the growing demand for sportswear in the region.
4. Australia: The company entered the Australian market and operates stores there,
capitalizing on the country's sports and fashion culture.
In conclusion, JD Sports is a prominent sports-fashion retailer with a rich history and global
influence. The company's wide range of brands, exclusive releases, streetwear offerings, and
global expansion have made it a significant player in the sportswear and fashion industry. Its
impact on youth culture and retail trends is evident in its growing popularity and market
presence.
 CHAPTER 2

Market Share:

Hypothetical JD Sports Sales: $200 million

Hypothetical Total Market Sales: $2 billion

Market Share = (JD Sports Sales / Total Market Sales) x 100

Market Share = ($200,000,000 / $2,000,000,000) x 100 = 10%

Interpretation: JD Sports has a hypothetical market share of 10% in a $2 billion market.

Usage Index:

Hypothetical JD Sports Users: 1,000,000

Hypothetical Total Customers: 2,000,000

Usage Index = (JD Sports Users / Total Customers) x 100

Usage Index = (1,000,000 / 2,000,000) x 100 = 50%

Interpretation: In this hypothetical scenario, 50% of customers actively use JD Sports products.

Relative Market Share:

Hypothetical JD Sports Market Share: 10%

Hypothetical Competitor's Market Share: 5%

Relative Market Share = (JD Sports Market Share) / (Competitor's Market Share)

Relative Market Share = 10% / 5% = 2

Interpretation: JD Sports relative market share is 2, indicating that it has double the market share
of its closest competitor.

Market Concentration:
 Hypothetical Top 3 Companies' Sales: $1 billion

Hypothetical Total Market Sales: $2 billion

Market Concentration = (Top 3 Companies' Sales / Total Market Sales) x 100

Market Concentration = ($1,000,000,000 / $2,000,000,000) x 100 = 50%

Interpretation: In this scenario, the top 3 companies in the market control 50% of the total market
sales.

Customer Satisfaction:

Hypothetical Satisfied Customers: 1,800,000

Hypothetical Total Customers Surveyed: 2,000,000

Customer Satisfaction = (Satisfied Customers / Total Customers Surveyed) x 100

Customer Satisfaction = (1,800,000 / 2,000,000) x 100 = 90%

Interpretation: In this hypothetical scenario, JD Sports has a customer satisfaction rate of 90%.

Brand Development Index (BDI):

Hypothetical JD Sports Sales in a Specific Region: $30 million

Hypothetical JD Sports Total Sales: $200 million

BDI = (JD Sports Sales in Specific Region / JD Sports Total Sales) x 100

BDI = ($30,000,000 / $200,000,000) x 100 = 15%

Interpretation: The BDI for JD Sports in that specific region is 15%, indicating that JD Sports
sales in that region represent 15% of its total sales.

Willingness to Recommend:

Hypothetical Customers Willing to Recommend: 1,500,000

Hypothetical Total Customers Surveyed: 2,000,000

 Willingness to Recommend = (Customers Willing to Recommend / Total Customers
Surveyed) x 100

Willingness to Recommend = (1,500,000 / 2,000,000) x 100 = 75%

Interpretation: In this hypothetical scenario, 75% of customers are willing to recommend JD

Sports to others.

CHAPTER 3
Fixed Cost:
Hypothetical Total Cost: $20 million
Hypothetical Variable Cost: $10 million
Fixed Cost = Total Cost - Variable Cost
Fixed Cost = $20 million - $10 million
Fixed Cost = $10 million
Interpretation: In this hypothetical scenario, JD Sports fixed costs amount to $10 million. Fixed
costs are expenses that do not vary with the level of production or sales, such as rent, salaries,
and insurance.
Variable Cost:
Hypothetical Total Cost: $20 million
Hypothetical Fixed Cost: $10 million
Variable Cost = Total Cost - Fixed Cost
Variable Cost = $20 million - $10 million = $10M
Interpretation: In this hypothetical scenario, JD Sports variable costs amount to $10 million.
Variable costs are expenses that change in direct proportion to the level of production or sales,
such as the cost of raw materials, shipping, and sales commissions.
Unit Margin:
Hypothetical Total Revenue: $15 million
Hypothetical Total Variable Costs: $9 million
Unit Margin = (Total Revenue - Total Variable Costs) / Total Units Sold
Hypothetical Total Units Sold: 500,000
Unit Margin = ($15 million - $9 million) / 500,000
Unit Margin = $6 million / 500,000
Unit Margin = $12 per unit
Interpretation: JD Sports unit margin is $12 per product. This represents the profit earned on
each unit after covering variable costs. It's a key metric for evaluating the profitability of
individual products.
Channel Margin:
Hypothetical Total Revenue from Online Sales: $5 million
Hypothetical Total Variable Costs for Online Sales: $3 million
Channel Margin for Online Sales = (Total Revenue from Online Sales - Total Variable Costs for
Online Sales) / Total Online Units Sold
Hypothetical Total Online Units Sold: 200,000
Channel Margin for Online Sales = ($5 million - $3 million) / 200,000
Channel Margin for Online Sales = $2 million / 200,000
Channel Margin for Online Sales = $10 per unit
Interpretation: The channel margin for JD Sports online sales is $10 per unit. This represents the
profit earned from online sales per unit after covering variable costs specific to online sales.
Average Price per Unit:
Hypothetical Total Revenue: $15 million
Hypothetical Total Units Sold: 500,000
Average Price per Unit = Total Revenue / Total Units Sold
Average Price per Unit = $15 million / 500,000
Average Price per Unit = $30 per unit
Interpretation: The average price per unit for JD Sports products is $30. This metric provides
insights into the pricing strategy and the value of products in the market.
Marketing Spending:
Hypothetical Total Marketing Spending: $10 million
Hypothetical Fixed Marketing Spending: $4 million
Hypothetical Variable Marketing Spending: $6 million
Interpretation: JD Sports total marketing spending is $10 million, with $4 million being fixed
costs (such as salaries and rent) and $6 million being variable costs (expenses that vary with
marketing activities, like advertising). This information is crucial for budget planning and cost
control.
Break-Even Analysis:
Hypothetical Total Revenue: $20 million
Hypothetical Total Variable Costs: $6 million
Break-Even Point = Total Fixed Costs / (1 - (Total Variable Costs / Total Revenue))
Break-Even Point = $4 million / (1 - ($6 million / $20 million))
Break-Even Point = $4 million / (1 - 0.3) = $4 million / 0.7 = $5.71 million
Interpretation: JD Sports break-even point is $5.71 million in total revenue. This means that JD
Sports needs to generate at least $5.71 million in sales to cover both fixed and variable costs and
start making a profit.
Contribution Analysis:
Contribution Margin = (Total Revenue - Total Variable Costs) / Total Revenue
Contribution Margin = ($20 million - $6 million) / $20 million = $14 million / $20 million =
70%
Interpretation: JD Sports contribution margin is 70%. This represents the portion of each dollar
of sales revenue that contributes to covering fixed costs and generating profit after variable costs
are deducted.
Target Volume:
Hypothetical Contribution per Unit: $14 (derived from the contribution analysis)
Target Volume = Total Fixed Costs / Contribution per Unit
Target Volume = $4 million / $14 ≈ 285,714 units
Interpretation: JD Sports needs to sell approximately 285,714 units of its products to cover its
fixed costs and start making a profit, based on the contribution per unit.
 CHAPTER 4

Trial:
Hypothetical Total Customers: 1,000,000
Hypothetical New Customers Trying JD Sports : 100,000
Trial Rate = (New Customers Trying JD Sports / Total Customers) x 100
Trial Rate = (100,000 / 1,000,000) x 100 = 10%
Interpretation: In this hypothetical scenario, JD Sports trial rate is 10%. This means that 10% of
the total customer base are new customers trying JD Sports , possibly attracted by promotions or
marketing campaigns.
Repeat:
Hypothetical Total Customers: 1,000,000
Hypothetical Repeat Customers: 400,000
Repeat Rate = (Repeat Customers / Total Customers) x 100
Repeat Rate = (400,000 / 1,000,000) x 100 = 40%
Interpretation: In this hypothetical scenario, JD Sports repeat rate is 40%. This indicates that
40% of the total customer base are repeat customers who have made multiple purchases.
Penetration:
Hypothetical Total Target Market: 2,000,000
Hypothetical JD Sports Customers: 1,000,000
Penetration Rate = (JD Sports Customers / Total Target Market) x 100
Penetration Rate = (1,000,000 / 2,000,000) x 100 = 50%
Interpretation: In this hypothetical scenario, JD Sports has achieved a 50% penetration rate,
indicating that they have captured half of their total target market.
Volume Projections:
Hypothetical Average Purchase Amount: $50
Hypothetical Total Customers: 1,000,000
Volume Projections = Average Purchase Amount x Total Customers
Volume Projections = $50 x 1,000,000 = $50,000,000
Interpretation: Based on the hypothetical data, JD Sports is projected to generate $50 million in
sales from its customer base.
Percentage growth:
Percentage growth = (Current year revenue - Previous year revenue) / Previous year revenue *
100
Let, JD Sports revenue in 2022 was $120 million and its revenue in 2023 was $140 million.
Then, the percentage growth of JD Sports revenue in 2023 would be:
Percentage growth = (140 million - 120 million) / 120 million * 100 = 16.67%
 CHAPTER 5

Customer Retention:
Hypothetical Total Customers at the Start of the Period: 10,000
Hypothetical Customers Acquired During the Period: 2,000
Hypothetical Customers Lost During the Period: 1,000
Customer Retention Rate = [(Total Customers at the Start of the Period - Customers Lost During
the Period) / Total Customers at the Start of the Period] x 100
Customer Retention Rate = [(10,000 - 1,000) / 10,000] x 100 = 90%
Interpretation: In this hypothetical scenario, JD Sports has a customer retention rate of 90%,
meaning that 90% of the customers from the beginning of the period remained loyal to JD Sports
.

Prospect Value Versus Customer Value:

Hypothetical Total Revenue from Customers: $1,000,000
Hypothetical Total Revenue from Prospects: $200,000
Prospect Value = Total Revenue from Prospects
Customer Value = Total Revenue from Customers
Prospect Value Versus Customer Value = Prospect Value / Customer Value
Prospect Value Versus Customer Value = $200,000 / $1,000,000 = 0.2
Interpretation: In this hypothetical scenario, the prospect value is 20% (0.2) of the customer
value. This metric helps assess the effectiveness of converting prospects into paying customers.

Customer Profit Acquisition Versus Retention Spending:

Hypothetical Total Marketing Spending on Customer Acquisition: $300,000
Hypothetical Total Marketing Spending on Customer Retention: $150,000
Customer Profit Acquisition Versus Retention Spending = Total Marketing Spending on
Customer Acquisition / Total Marketing Spending on Customer Retention
Customer Profit Acquisition Versus Retention Spending = $300,000 / $150,000 = 2
Interpretation: In this hypothetical scenario, JD Sports spends twice as much on customer
acquisition as it does on customer retention. This metric helps evaluate the balance between
acquiring new customers and retaining existing ones.

Customer Lifetime Value (CLV):

Hypothetical Average Purchase Amount: $100
Hypothetical Average Purchase Frequency per Year: 2
Hypothetical Average Customer Lifespan: 5 years
CLV = (Average Purchase Amount x Average Purchase Frequency per Year x Average Customer
Lifespan) = ($100 x 2 x 5) = $1,000
Interpretation: In this hypothetical scenario, the average customer's lifetime value for JD Sports
is $1,000. This metric represents the total value a customer is expected to bring over their entire
relationship with the company.
 CHAPTER 6
Sales Potential:
Hypothetical Market Size: $50 million
Hypothetical Market Share Goal: 10%
Sales Potential = Market Size x Market Share Goal
Sales Potential = $50 million x 0.10
Sales Potential = $5 million
Interpretation: In this hypothetical scenario, JD Sports sales potential is $5 million,
representing the portion of the market share the company aims to capture.
Sales Goal:
Hypothetical Total Sales Target: $4 million
Sales Goal = Total Sales Target
Sales Goal = $4 million
Interpretation: In this hypothetical scenario, JD Sports sales goal is $4 million. This is the
specific sales target the company aims to achieve.
Break-even Number of Employees:
Hypothetical Total Fixed Costs: $1 million
Hypothetical Average Employee Compensation: $50,000 per year
Break-even Number of Employees = Total Fixed Costs / Average Employee Compensation
Break-even Number of Employees = $1 million / $50,000
Break-even Number of Employees = 20
Interpretation: In this hypothetical scenario, JD Sports needs at least 20 employees to cover its
fixed costs and break even.
Compensation:
Hypothetical Total Sales: $4 million
Hypothetical Average Commission Rate: 5%
Compensation = Average Commission Rate x Total Sales
Compensation = 0.05 x $4 million
Compensation = $200,000
Interpretation: In this hypothetical scenario, the total compensation for salespeople is $200,000
based on a 5% commission rate.
Upcoming Sales:
Hypothetical Number of Upcoming Sales Events: 10
Hypothetical Average Sales per Event: $20,000
Upcoming Sales = Number of Upcoming Sales Events x Average Sales per Event
Upcoming Sales = 10 x $20,000
Upcoming Sales = $200,000
Interpretation: In this hypothetical scenario, JD Sports anticipates $200,000 in sales from the
upcoming sales events.
Numeric Distribution:
Hypothetical Number of Stores Carrying JD Sports Products: 150
Hypothetical Total Number of Stores in the Market: 300
Numeric Distribution = (Number of Stores Carrying JD Sports Products / Total Number of
Stores in the Market) x 100
Numeric Distribution = (150 / 300) x 100
Numeric Distribution = 50%
Interpretation: In this hypothetical scenario, JD Sports numeric distribution is 50%, meaning
its products are available in half of the stores in the market.
All Commodity Volume (ACV)%:
Hypothetical JD Sports Sales to Total Market Sales: $2 million / $50 million
ACV% = (JD Sports Sales to Total Market Sales) x 100
ACV% = ($2 million / $50 million) x 100
ACV% = 4%
Interpretation: In this hypothetical scenario, JD Sports All Commodity Volume (ACV%) is
4%, indicating the company's share of the total market sales.
Product Category Volume (PCV) Distribution (%):
Hypothetical JD Sports Sales in a Specific Product Category: $500,000
Hypothetical Total Market Sales in the Same Category: $2 million
PCV Distribution (%) = (JD Sports Sales in the Category / Total Market Sales in the Category) x
100
PCV Distribution (%) = ($500,000 / $2 million) x 100
PCV Distribution (%) = 25%
Interpretation: In this hypothetical scenario, JD Sports Product Category Volume (PCV)
distribution in a specific category is 25%, meaning the company holds a 25% share of sales in
that category within the market.
Out-of-Stocks (%):
Hypothetical Outlets Where JD Sports Products Are Listed but Unavailable: 20
Hypothetical Total Outlets Where JD Sports Products Are Listed: 100
Out-of-Stocks (%) = (Outlets Where Products Are Unavailable / Total Outlets Where Products
Are Listed) x 100
Out-of-Stocks (%) = (20 / 100) x 100 = 20%
Interpretation: In this hypothetical scenario, JD Sports experiences an out-of-stocks rate of
20%. This metric indicates that 20% of the outlets where JD Sports products are listed have
experienced stock outs.
Service Levels; Percentage On-Time Delivery (%):
Hypothetical Deliveries Achieved in Timeframe Promised: 300
Hypothetical All Deliveries Initiated in the Period: 350
Percentage On-Time Delivery (%) = (Deliveries Achieved in Timeframe Promised / All
Deliveries Initiated) x 100
Percentage On-Time Delivery (%) = (300 / 350) x 100 = 85.71%
Interpretation: In this hypothetical scenario, JD Sports achieves an 85.71% on-time delivery
rate. This metric represents the percentage of deliveries that were completed within the promised
timeframe.
Inventory Turns (I):
Hypothetical Product Revenues: $5 million
Hypothetical Average Inventory: $1 million
Inventory Turns (I) = Product Revenues / Average Inventory
Inventory Turns (I) = $5 million / $1 million
Inventory Turns (I) = 5
Interpretation: In this hypothetical scenario, JD Sports achieves an inventory turnover rate of
5. This means that the company's inventory is sold and replaced five times over in a given
period. A high inventory turnover rate is generally favorable as it indicates efficient use of
inventory.
 CHAPTER 7

Price premium:
Price Premium (%) = (Brand A Price - Benchmark Price) / Benchmark Price
Let's assume some hypothetical data:
Brand A Price: $120
Benchmark Price: $100
Price Premium (%) = ($120 - $100) / $100 Price Premium (%) = $20 / $100 Price Premium (%)
= 20%
Interpretation: In this hypothetical scenario, Brand A's price is $120, which is $20 higher than
the benchmark price of $100. The Price Premium for Brand A is 20%. This means that Brand A's
price is 20% higher than the benchmark price. Customers purchasing Brand A are paying a 20%
premium compared to the benchmark price for a similar product. This metric helps assess the
pricing strategy and positioning of Brand A in the market.
Price Elasticity
Price elasticity is a measure of how sensitive the quantity demanded of a product is to changes in
its price. The formula for price elasticity is:
Price Elasticity = (% Change in Quantity Demanded) / (% Change in Price)
Let's say we have the following hypothetical data for JD Sports :
 Initial Price: $50
 New Price: $60
 Initial Quantity Demanded: 1,000 units
 New Quantity Demanded: 800 units
Price Elasticity = ((800 - 1,000) / 1,000) / ((60 - 50) / 50) = (-0.2) / (0.2) = -1
Interpretation: In this hypothetical scenario, JD Sports price elasticity is -1. This means that a
1% increase in price will result in a 1% decrease in the quantity demanded of their product,
indicating that the demand for their product is relatively elastic, as a change in price has an equal
and opposite percentage change in demand. JD Sports should consider this when setting their
pricing strategy, as increasing prices could lead to a significant decrease in sales.