In a strategic move to expand its influence in the dynamic world of retail, the Frasers Group, owner of Sports Direct, is all set to acquire one of Germany's leading sports retailers, SportsScheck. This development, slated for the first quarter of 2024, marks another milestone in the ever-expanding retail empire led by Mike Ashley.
SportsScheck, a powerhouse in sports retail, boasts an impressive 75-year history in the industry, with 34 retail outlets strategically positioned in prime city locations across Germany. It commands an impressive revenue of approximately €350 million (£303 million) and caters to a customer base of over 13 million annual visitors.
This move follows Frasers Group's recent move to increase its stake in the struggling online retailer Boohoo and its strategic investments in Asos, AO World, and Curry's.
It's important to note that the deal is currently awaiting regulatory approval, but all signs point to a successful conclusion in the first quarter of 2024. Once finalized, SportsScheck will benefit from Frasers' elevation strategy, which encompasses investments in store concepts, digital capabilities, and brand relationships.
The significance of this acquisition is not lost on Frasers Group. As the strategic partner for major global brands like Nike and Adidas, the group's international expansion strategy is poised for a substantial boost. Michael Murray, CEO of Frasers Group, expressed his enthusiasm, stating, "Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA. We are delighted to do this with the full support of major global brand partners, Adidas and Nike."
The German market, with its immense potential, represents a key focus area for Frasers Group's international retail aspirations. The company aims to leverage its experience, resources, and relationships to fortify SportsScheck's position in the market.
This acquisition is just the latest in a series of strategic moves by Frasers Group. The group has solidified its status as the largest shareholder of the beleaguered online retailer Boohoo, along with substantial stakes in Asos, AO World, and Curry's. Frasers Group's track record of investing in distressed businesses, including the likes of House of Fraser, Missguided, and Gieves & Hawkes, remains noteworthy.
This trajectory of growth and diversification continues under the leadership of Michael Murray, who assumed the role of CEO in May 2022. His commitment and vision have not gone unnoticed. Bjørn Gulden, CEO of Adidas AG, praised Mr. Murray's accomplishments, highlighting how the acquisition of SportsScheck is yet another testament to Frasers Group's evolution into a global player in the sports industry.
In light of these developments, Fraser Group's shares experienced a minor dip of approximately 0.1 percent, settling at 804.50p during morning trading on Tuesday. This fluctuation reflects the dynamic nature of the retail landscape, where strategic moves are constantly reshaping the industry's landscape.