Frasers Group SWOT & PESTLE Analysis
COMPANY PROFILE -Frasers Group
Business Sector :Lifestyle and Retail
Operating Geography :United Kingdom, Europe, Global
About Frasers Group :
Frasers Group, formally called Sports Direct International is the UK’s largest sporting goods retailer by revenue and is headquartered in Shirebrook, United Kingdom. It was founded as a single store in 1982 by Mike Ashley. It operates in various portfolios like sports, fitness, fashion and luxury brands. It has acquired a number of brands since 2002 namely Lonsdale, Dunlop, House of Frasers, LA Gera, fashion brand Kangol, Field & Trek and Sport 2000, etc. It was first listed on London Stock Exchange in 2007.
The company has around 29,400 staffs across their six business segments namely: Premium Lifestyle, House of Fraser Retail, Rest of World Retail, European Sports Retail, UK Sports Retail and Wholesale & Licensing, each segment having their own unique customer proposition. They focus also on their new generation retail stores which are led by third party branded areas and is a part of multi-channel elevation strategy. They are typically larger in size located at strategic locations. Giving their customers a great retail experience is vital for Frasers Group.
The Group’s strategy lies in investing in their people, business and Third Party Brand Partners so as to achieving distinguished excellence across all their channels. It aspires to be an international leader in sports, lifestyle and luxury retail business and meet the expectations of their customers, shareholders and third-party brand partners. The company provides a full multichannel retail approach including wholesaling in U.K. and internationally in the European continent and America. Frasers Group’s mission statement reads “‘to become europe’s leading elevated sporting goods retailer.’”
Frasers’ Unique Selling Proposition is their multi-channel elevation Strategy which is a rolling program happening every 5-10 years. The strategy works towards increasing the customer’s offering across marketing, social media, product, digital and in-store
Frasers Group Revenue :
£ 3,957.4 million - FY ending 26th April 2020 (y-o-y growth of +6.9%)
£ 3,701.9 million - FY ending 28th April 2019
Competitive Analysis of Frasers Group
The SWOT analysis for Frasers Group is presented in a matrix below followed by detailed analysis
| Strengths | Weaknesses |
| 1. UK’s largest Sporting goods retailer 2. Strategic acquisitions to achieve elevation and enable premium customer experience 3. Strategic partnerships with numerous popular brands like Puma, Adidas, Nike and Under Armour 4. Multi channel elevation strategy towards increasing customer offerings | 1. Focus on over expansion of stores leading to diversion from building of the brand 2. Low operating margins and scrutiny of pricing policies 3. Underpaid temporary workers at stores turning rebellion |
| Opportunities | Threats |
| 1. Improvement in the store experience for customers 2. Increasing health awareness driving exponential growth in the sports market | 1. Rising cost of raw materials can slow down the manufacturing 2. Brexit can hit on the sports industry since it has a major contribution to the UK economy |
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Detailed SWOT Analysis of Frasers Group
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.
The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threat
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Major Competitors :
- JD Sports Fashion
- Hibbett
- Dick’s sporting goods
- Decathlon
- Rangers mega store
- Kitbag.com
- Ruggers.com
Major Brands :
- Flannels
- Sports Direct
- USC
- Jack Wills
- Game
- Evans Cycles
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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References used in Frasers Group Analysis Report
1. Frasers Group Annual Report and accounts 2020 - https://www.sportsdirectplc.com/~/media/Files/S/Sports-Direct/annual-report/Annual%20Report%20%20Final%20-%2011092020.pdf
2. Frasers Group Annual Report 2019 - https://www.sportsdirectplc.com/~/media/Files/S/Sports-Direct/annual-report/annual-report-2019-final.pdf
3. Frasers Group leading brands - https://www.sportsdirectplc.com/leading-brands.aspx
4. Frasers Group About Us- https://www.sportsdirectplc.com/about-us/strategy.aspx
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Frasers Group SWOT and PESTLE analysis has been conducted by and reviewed by senior analysts from Barakaat Consulting.
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