Unemployment among young people in the UK is affecting sales growth and profits at JD Sports, the parent company of the sportswear chain. The company has reported challenges due to the significant number of individuals under the age of 25 who are not engaged in work, education, or training.
JD Group indicated that the UK market was the least successful for its brands, which also include Blacks and Go Outdoors, as well as several chains in the US and Europe. Chief Executive Régis Schultz highlighted pressures on the company’s main customer base, citing rising youth unemployment and uncertainty in consumer sentiment. Recent official statistics reveal that the proportion of 16- to 24-year-olds categorized as NEET (not in education, employment, or training) remains close to the highest levels recorded in the past decade.
Despite a slight decrease in NEET figures to 946,000 from 948,000 in the previous quarter, advocates claim that this situation poses a risk of failing an entire generation of youth. Currently, one in eight young people falls into the NEET category, accompanying a broader rise in overall unemployment, which has reached a rate of 5%, the highest since the COVID-19 pandemic. Reports indicate that nearly half of all job losses since Labour assumed office have been among individuals under 25.
The decrease in disposable income for young consumers has contributed to a 3.3% decline in sales at established JD Group stores in the three-month period leading to November 1. Sales also dropped in the US and European markets, amid similar challenges and a slowdown in demand for women’s vintage trainers. Additionally, JD Sports has a significant reliance on Nike, which is facing difficulties in reinvigorating consumer interest.
Consequently, JD Sports anticipates that annual profits will be at the lower end of expectations, now projected at approximately £853 million, compared to earlier hopes of reaching £1 billion. The company is adopting a cautious stance regarding its financial outlook, responding to recent economic conditions.
Source: https://www.theguardian.com/business/2025/nov/20/uk-is-worst-performing-market-for-jd-sports-as-youth-unemployment-hits-sales