Frasers Group, previously known as Sports Direct, has recently announced the sale of its US retail businesses, Bobs Stores and Eastern Mountain Sports (EMS), to GoDigital Media Group (GDMG) for a cash sum of $70 million. This decision aims to strengthen Frasers Group’s general working capital, which is crucial as the company is currently heavily investing in its elevation strategy in the UK.

The elevation strategy focuses on the opening of high-end stores across the UK and aims to enhance the overall store experience, implement digital initiatives, and develop new products. It is important to note that the sale does not include any of the newly established elevated stores that are central to the company’s strategy.

By divesting these non-core businesses, Frasers Group will be able to concentrate even more on delivering its elevation strategy, ensuring an improved store experience for customers and further expanding their digital presence. This sale comes after the acquisition of Bobs Stores and EMS for approximately $101 million in 2017 when Frasers Group was still operating under the name Sports Direct. The US businesses were acquired from Eastern Outfitters, which had filed for bankruptcy, representing Frasers Group’s initial venture into the US market.

At the time of acquisition, Frasers Group had ambitious plans to operate 50 physical stores alongside their web stores, with a strong emphasis on expansion in the US market. A spokesperson from the company had expressed enthusiasm regarding the opportunity to strengthen their presence in the United States and capitalize on the established reputation of Bobs Stores and EMS to rapidly expand their store and online presence. However, Frasers Group’s subsequent shift towards a more upmarket positioning caused the US stores to become increasingly misaligned with the overall brand strategy.

Overall, this sale allows Frasers Group to streamline its operations and focus on its core business objectives. The proceeds generated from the sale will provide a financial boost for ongoing investments in improving the store experience and expanding the company’s reach in the UK market. Through this strategic move, Frasers Group is positioning itself to deliver even greater value to its customers while driving growth and success in the highly competitive retail industry.

Useful Links:
1. Frasers Group Official Website
2. GoDigital Media Group Official Website