Frasers Group SWOT & PESTLE Analysis

Strength

1. UK’s largest Sporting goods retailer: Fraser has a wide number of stores spread across UK, Europe and America. The count reaches more than 540 (as in 2019). The Group offers a diversified portfolio of sports, fitness, fashion, and lifestyle fascias in over 20 countries as of early 2020. Of all its six business segments the UK Sports Retail is the growth driver of the group and accounts for 55.7% of total revenue which increased to £2,203.3 million in FY2020 as compared to £2,187.3 million in FY2019. Precisely the UK Sports Retail revenue increased by 0.3%. It encompasses sports, lifestyle and luxury apparels under its name and runs six vertical business under it each delivering a unique proposition catering to different consumers.

2. Strategic acquisitions to achieve elevation and enable premium customer experience: Frasers Group's commitment towards expanding its premium segment across sport, fashion, and lifestyle fascias, with a multi-brand offering for its customers, is the biggest strategic priority for the Group that will continue to leverage its business. Strategic acquisitions help the group to achieve this goal. Recent acquisitions in FY2020 included GAME Digital plc, Jack Wills, Sofa.com, and Brookfield Unit Trust (Cheshunt Retail Park). These businesses tend to support the Frasers' elevation strategy and add great value to the company. The group's strategic investment in the Mulberry brand also a good strategic fit. Further in 2020, the company plans to invest nearly 10% in Hugo Boss AG through a combination of physical stock, contracts for difference, and the sale of put options.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Initiatives to reduce internal environmental impact: As a responsible organization, Frasers believes in minimizing any detrimental impact that the group may have on their immediate communities and the environment. In FY2019 the company sustained its tree-planting partnership with The Woodland Trust. Frasers has a keen focus on recycling, as of 2020, nearly 88% of waste is recycled from its Shirebrook distribution center. Further, the group's bags for life contain 70% recycled materials, which will be increased to 85% by FY2021. With the ‘voice picking’ facility in its warehouse, the amount of paper usage has been reduced by 17m sheets, saving over 2,000 trees on average per year. In order to encourage responsible printing, the group will be utilizing the card-activated printers. Along with recycling its office papers even the group's brand shoe boxes are made from 100% recycled cards. The group's Karrimor brand has been responsible for this recycling process for the past five years

2. Striving to produce and offer sustainable products: Ethical and sustainable clothing is gaining huge traction in the activewear market, as customer's demand for environmentally friendly clothing has increased. Gul Recore Wetsuits, an activewear product by Frasers use 45 plastic bottles to make the fabric of one wetsuit and use earth mined limestone to replace petrochemicals in neoprene. These products reduce 24% CO2 per wetsuit and 26% carbon footprint per kg of fabric and conserve nearly 104 liters of water per kg of fabric. Thus, this is an exceptional initiative by the company in order to reduce the environmental impact. With the launch of Karrimor OM, a contemporary lifestyle brand designed for all types of workouts, the group tapped into the sustainable clothing segment in 2020. The brand's products are made with sustainable bamboo and bamboo organic cotton mix, it is sustainable activewear that has been conscientiously created. Also in FY2020, the group's vegan footwear range was made available in stores.

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