Frasers Group and THG recently confirmed the sale of THG’s online Coggles operation to Frasers Group. This move comes after Frasers took on Matches, realizing it needed more resources to turn it around. The acquisition of Coggles includes a partnership between the two companies to enhance retail operations. Frasers Group will integrate its customer credit and loyalty program into THG’s Ingenuity platform, benefiting customers across THG retail sites. Frasers Group will also benefit from THG’s courier management services to improve efficiency in Australian fulfillment and logistics operations.
Furthermore, THG will have access to physical store distribution, with a curated range of Myprotein products launching in-store at Frasers’ Sports Direct chain. The price of the Coggles acquisition was not disclosed, but it is seen as strengthening Frasers’ Premium and Luxury portfolio alongside Flannels. THG’s luxury division made around £43 million in sales last year and was break-even. The decision to sell Coggles indicates Frasers’ focus on other areas of luxury e-tail, with THG planning to support the brand portfolio post-disposal.
THG also provided a trading update, highlighting the positive momentum in THG Beauty and Ingenuity operations. In THG Beauty, there was a strong recovery in beauty manufacturing in H1 2024, with increased customer engagement and loyalty program membership. THG’s Ingenuity operations saw an acceleration of third-party revenue growth in Q2, with broad-based revenue growth across new and existing clients in H1.
This partnership and sale signify a strategic move for both Frasers Group and THG, allowing them to leverage each other’s strengths in retail operations and technology services. The collaboration aims to enhance the customer experience and drive growth in both companies’ respective businesses. With the continued momentum in beauty manufacturing and Ingenuity operations, both companies are poised for further success in the retail industry.