With news of a new and expansive partnership developing between THG and Frasers Group, THG’s AGM promises to be anything but dull, according to a post from Matthew Moulding, which appeared this morning on LinkedIn.
Firstly, Frasers is to migrate its Australian operations onto the Ingenuity platform which will, says Moulding, add significant GMV & scale to THG Ingenuity in the region. This ties in with Frasers Pay launching in the Ingenuity checkout, making it available to millions of Myprotein, LOOKFANTASTIC.COM and Cult Beauty customers, as well as to Ingenuity clients and their customers. Myprotein will also launch a curated range of products in Sports Direct stores, including the new Myprotein x HYROX range.
Finally, THG has agreed to sell its luxury fashion division, namely Coggles.com, to Frasers. THG had acquired Coggles.com from administrators for what it described as ‘next to nothing’ to explore synergies with its premium beauty business. A dedicated team got to work on Coggles under Marisa Shutt, growing it from zero to sales of c£43m last year (+6 per cent on 2022) and almost breakeven. But given that many major online luxury players collapsed last year, including FARFETCH, then the performance by THG’s luxury team has been nothing short o outstanding.
However, with THG recognising that the Coggles business now needs increased investment, support and energy to become major global player the conclusion was reached that it made sense to sell, and by selling Coggles to Frasers and agreeing Ingenuity partnerships, THG now has a chance to play a bigger role in the luxury sector.
Moulding commented: “We are delighted to be partnering with Frasers Group across a broad range of initiatives, in particular bringing Frasers Plus to consumers shopping with Ingenuity clients, as well as to our own retail sites.”
Michael Murray, Frasers Group CEO, said: “Today we are pleased to announce a new strategic partnership with THG, which includes launching our consume credit and loyalty proposition, Frasers Plus, across the THG Ingenuity platform. This is an exciting step towards our Frasers Plus ambitions as we look to expand its offering across additional third party platforms.”
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