- Takes 14.65% stake in Aussie retailer
- ‘Mutually beneficial opportunities’ for both groups
- Strengthens ties with Hoka, Skechers
Despite already having fingers in multiple pies, Mike Ashley-controlled Frasers (FRAS) has swooped on yet another opportunity to expand its international footprint.
The deal-hungry conglomerate has taken a 14.65% stake in Australian sports and lifestyle brands seller Accent, a tie-up the Sports Direct owner said will allow it to grow its presence in Australia and New Zealand, ‘a key market in the group’s ambition to become a leading global sports retailer’.
Accent is also a distributor of well-known brands such as Hoka and Ugg, both of which are currently cleaning up in the footwear market.
ACCENT ON GROWTH
A premium products distributor that specialises in bringing many of the worlds’ best brands to market, Accent chalked up sales of AUD$1.6 billion (£822 million) in full year 2024 from nearly 900 stores and websites consisting of sports fashion stores, owned brands and exclusively distributed brands.
These include Skechers and Vans as well as the aforementioned Hoka and Ugg.
Frasers, which recently passed the half-a-billion-pound mark for annual pre-tax profit, continues to take big strategic strides and leave its days as a pile ‘em high, sell ‘em cheap retailer in the distance through its winning ‘Elevation’ strategy, with strategic brand relationships giving it better access to product across the group.
The Shirebrook-based giant’s sprawling collection of retail interests includes GAME, Jack Wills and Evans Cycles as well as stakes in ASOS (ASC), AO World (AO.), Currys (CURY) and German fashion giant Hugo Boss (BOSS:ETR) among others.
Frasers recently inked a ‘multi-year’ partnership with e-commerce innovator THG (THG), under which the latter will support the former with courier management services and re-platforming its Australian fulfilment and logistics operations.
MUTUALLY BENEFICIAL DEAL
Frasers’ CEO Michael Murray said Accent has built an ‘incredible ecosystem’ of sports and lifestyle brands in Australia and New Zealand and has ‘a strong platform across stores, digital, and distribution, offering a lot of potential for Frasers concepts and brands. We are looking forward to working with the Accent management team to unlock mutually beneficial opportunities for both groups.’
Russ Mould, investment director at AJ Bell, explained that planting flags in yet more territories is part of Frasers’ strategy to be a much bigger international player.
‘It is now active in more than 20 countries and its goal is to provide consumers with access to the world’s most loved sports, premium and luxury brands,’ observed Mould.
‘The investment in Accent makes perfect sense as it will enable Frasers to gain valuable insight into the Australian and New Zealand markets. As always, don’t expect this investment to lead to a full takeover of the company. That isn’t Fraser’s style. It only pounces on businesses when they are on their knees and going for pennies.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (James Crux) and the editor (Martin Gamble) own shares in AJ Bell.
