JD Sports Fashion has reacted angrily after the Competition and Markets Authority (CMA) decided to prohibit its acquisition of Footasylum. Given that the company has already taken control of its smaller peer, it means it now has to sell the Footasylum business.

The company disagrees with the conclusion reached by the CMA, which materially fails to take proper account of the dynamic and rapidly evolving competitive landscape in which we operate, as well as the long-lasting — and likely permanent — impact that Covid-19 has had on the industry, which may never return to its pre-merger state, to the particular detriment of smaller retailers like Footasylum.

According to JD’s executive chairman Peter Cowgill, CMA’s thinking continues to rely on an inaccurate and outdated analysis of the UK sports retail competitive landscape, and is underpinned by outdated and flawed customer surveys. He believes that the CMA has failed to properly understand trends and has completely dismissed any evidence which goes against their pre-judged and erroneous interpretation of the market.

It thinks the CMA's decision becomes even more difficult to comprehend in the context of Covid-19 and the seismic impact it has had on the current UK retail environment; not to mention the enduring challenges that will exist beyond the current lockdown as a result of social distancing and weakened consumer confidence.