In a move to streamline its operations, THG, the UK-based e-commerce group, has struck a deal with Frasers Group, owner of Sports Direct, to sell its luxury goods websites, including the well-known Coggles brand.
The agreement extends beyond a simple sale, however, establishing a multifaceted partnership between the two retail giants.
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Strategic alliance
A key aspect of the deal involves integrating Frasers’ loyalty programme, Frasers Plus, into THG’s Ingenuity e-commerce platform.
This will allow THG customers to benefit from the loyalty scheme, potentially boosting customer engagement for both companies.
Frasers gains immediate access to the luxury market through the acquisition of THG’s luxury websites.
The deal also includes plans to stock a range of THG’s protein products, including those from its Myprotein brand, within Sports Direct stores.
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By GlobalDataAdditionally, Frasers will leverage THG’s expertise in courier management to bolster its Australian logistics operations.
For THG, the deal allows it to focus on its core business segments: beauty (through websites such as Lookfantastic) and nutrition (centred around Myprotein).
It will continue to operate the acquired luxury websites through the Ingenuity platform, ensuring a smooth transition for customers.
Financial details
Neither company disclosed the sale price of the luxury websites.
THG’s luxury division generated approximately £43m ($54.48m) in revenue in 2023.
According to Bloomberg, the news positively impacted THG’s share price, which rose by 5.5% in early trading.
Looking forward
This partnership presents a strategic win for both parties.
THG streamlines its operations and gains access to a wider customer base through Sports Direct stores.
Frasers expands its offerings, enhances its loyalty programme reach, and improves its logistics capabilities.
The deal comes amidst challenges for THG, whose share price has fallen significantly since its 2020 listing.
