Frasers Group SWOT and PESTLE Analysis

Strength

1. UK’s largest Sporting goods retailer: Fraser group is the largest sporting goods retailer in the UK by revenue. Frasers Group's strong portfolio of brands, including Sports Direct and JD Sports, gives it a significant presence in the sports retail market and positions it as a major player. The company's flagship brand, Sports Direct, is one of the largest sports retailers in the UK, with a wide range of products, including sports equipment, clothing, and footwear. In addition to Sports Direct, Frasers Group also owns the JD Sports brand, which is known for its fashion-focused approach to sports retail and is one of the leading retailers in the UK for sports-inspired clothing and footwear. The group has a very strong store footprint with 808 stores across the United Kingdom with a total of approximately 6.7 million sq.ft. of retail space. Of all its five business segments, the UK Sports Retail is the growth driver of the group and accounts for 55.0% of total revenue which increased to £2,640.1 million in FY2022 as compared to £1,968.5 million in FY2021, a growth of 34.1%. The group’s UK Sports Retail includes core sports retail store operations in the UK, plus all the Group’s sports retail online business, the gyms, SRL, the Group’s Shirebrook campus operations, retail store operations in Northern Ireland, Evans Cycles and GAME UK. 2. Strategic acquisitions to achieve elevation and enable premium customer experience: Frasers Group has been actively pursuing a strategy of growth through acquisitions. Over the years, the company has made a number of strategic acquisitions that have helped to expand its portfolio of brands and businesses, as well as its presence in key markets and geographies. In 2020, Frasers Group acquired Jack Wills, a premium lifestyle brand known for its British heritage and fashion-focused approach. The acquisition helped to expand Frasers Group's portfolio of brands and its presence in the fashion retail market. In 2018, Frasers Group acquired House of Fraser, a leading department store chain in the UK. The acquisition helped to expand Frasers Group's presence in the UK retail market and provided the company with a significant platform for growth. In 2019, Frasers Group acquired Everlast, a leading sportswear brand known for its quality and durability. The acquisition helped to expand Frasers Group's presence in the sports retail market and provided the company with a well-established brand with a strong reputation. During the FY 2022, the group made key acquisitions of Studio Retail Limited. Post that period they have acquired Missguided and I Saw It First. The group believes that these acquisitions will enable it to unlock new e-commerce capabilities and access a wider customer base. These acquisitions have helped Frasers Group to expand its presence in key markets and geographies, as well as to diversify its revenue streams and portfolio of brands. The company's strategic approach to acquisitions has been a key driver of its growth and success. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

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: Having initiatives in place to reduce environmental impact is becoming increasingly important for retail companies, including sporting goods retailers. This is driven by consumer demand, legal and regulatory requirements, and the potential business benefits of sustainability. Consumers are becoming more environmentally conscious and are increasingly looking for companies that align with their values and prioritize sustainability. By having initiatives in place to reduce their environmental impact, retail companies can appeal to this growing market segment and build customer loyalty. Retail companies that do not take action to reduce their environmental impact risk facing fines and other penalties. Implementing initiatives to reduce environmental impact can bring significant business benefits, including reduced costs, improved supply chain efficiency, and increased competitiveness. As a responsible organization, Frasers believes in minimizing any detrimental impact that the group may have on their immediate communities and the environment. Frasers has a keen focus on recycling, as of 2022, nearly 86% of waste is recycled from its Shirebrook distribution center. Cardboard contains 68% of this waste. For FY 2023, the Group has set the target that it will recycle 90% of its waste from Shirebrook distribution. All of the Group’s carrier bags are now fully FSC certified and recyclable or from 100% recycled and recyclable plastic (80% post-consumer waste, 20% factory waste). The remaining section under "Environmental" is available only in the 'Complete Report' on purchase.