Sports Direct signed a strategic alliance agreement in China with multibrand apparel retailer ITAT, based in Shenzhen. The deal is to supply product from Sports Direct’s portfolio of brands—which includes Lonsdale, Dunlop, and Slazenger—to ITAT’s large-format Super Club stores. It is expected to cost Sports Direct some £20 million in the first year in store fits and working capital, against a slice of revenue from sales.

ITAT is the largest branded apparel retailer in China with more than 700 stores in 275 cities. The 120 Super Club stores will have branded store-in-store concepts of approximately 250 square meters per store.

Developing international distribution channels is part of Sports Direct’s growth plan.

Commenting on the partnership, Dave Forsey, Sports Direct chief executive, says, “This alliance offers us an ideal opportunity to access ITAT’s fast-growing store network, and through it, to be able to offer our brands to the Chinese consumer.”