Singapore-based distribution company, SUTL Corporation, has divested the Nike retail business through its sport retailing arm to GMG, marking the end of its 12-year partnership with the American sports label.
Under the agreement, all Nike-only retail stores run by SUTL in Singapore and Malaysia will now be owned and operated by Dubai-based retailer and distributor GMG. SUTL said the divestment will free up resources for it to seek partnerships in other growth areas.
“We felt that now is the right time to capitalise on a profitable investment we’ve made over more than a decade,” said Arthur Tay, chairman and CEO of SUTL.
Appointed by Nike as one of three operators in 2010 with three Nike-only stores, the company subsequently became the exclusive operator of Nike-only retail outlets in Singapore and Malaysia. SUTL opened Nike’s largest retail store in Southeast Asia at Jewel Changi Airport in 2019 and Malaysia’s first Nike Rise retail concept store at Pavilion Kuala Lumpur last year.
“The acquisition of SUTL’s Nike stores marks another important milestone in our growth journey,” said Mohammad A Baker, deputy chairman and CEO of GMG. “This is not simply another acquisition of retail stores, but also an opportunity to solidify our position in Asia, enabling us to further cement our long-standing partnership with Nike and expand our footprint in Asia.”
Working across the Middle East, North Africa, and Asia, GMG has introduced more than 120 brands into its markets, spanning four key verticals namely sports, food and health.
