Frasers Group is to take on THG’s luxury goods websites as part of a wider partnership as the Manchester ecommerce goods and services giant seeks to streamline its portfolio.
The companies also revealed this morning that Frasers’ credit and loyalty scheme, Frasers Plus, would be integrated into THG’s Ingenuity ecommerce platform and made available to THG customers as part of the agreement.
Frasers will buy THG’s luxury goods websites such as Coggles, which generate £43m in annual sales, and sell a range of THG protein products in Sports Direct stores. The companies did not give a value for the deals.
THG’s Ingenuity arm helps other brands such as Coca-Cola and Elemis sell online. The company’s other major divisions include beauty, through websites such as Lookfantastic, and nutrition, which centres around its Myprotein brand.
The company, previously known as The Hut Group, listed on the London stock market with a £5.4bn valuation in 2020, though shares have slipped since, which Matthew Moulding, THG’s outspoken chief executive and co-founder, has variously blamed the on wariness from investors towards London-listed companies and negative media coverage. Shares rose by about 1 per cent in morning trading on Monday.
THG’s luxury division is largely made up of fashion brand Coggles, which THG bought from administration in 2013 for a nominal sum. Ingenuity will continue to power Coggles under the deal.
THG also said in its update that trading was in line with expectations. The company is due to hold its annual meeting later today.
