Frasers Group, the UK-based parent of Sports Direct, has signed a long-term retail agreement with Accent Group to launch and operate Sports Direct across Australia and New Zealand (ANZ), marking the next step in Frasers’ international growth plans.
Frasers is Accent Group’s largest shareholder.
Frasers, founded and majority-owned by Mike Ashley, said Accent Group has a “significant presence in Australasia, where it is a key retailer and distributor of premium lifestyle and sports footwear with over 900 stores, 12 distributed brands and proven retail operations capability in the Australian market.”
Accent CEO Daniel Agostinelli said the company “plans to build a large Sports Direct business in Australia with an initial rollout of at least 50 Sports Direct stores plus online targeted over the first six years.” The rollout has key brand support and will “leverage the proven operating model, combined capability and global brand relationships enabled by the Frasers and Accent alliance.”
The company said this latest international partnership will support Frasers Group’s growth across Australia and New Zealand, with the objective of opening 100 stores in the region. The move further solidifies Frasers’ strategy in the South Pacific after inking a deal last month with MAP Active, a sports, fashion and distributor operating in South Asia, to launch Sports Direct in five new markets. Frasers has long-term growth plans to open over 350 stores in the region.
This latest move sounds like the UK is putting the old empire back together as Frasers battles with cross-town rival JD Sports for international expansion to become the leading global sports retailer.
While JD has focused on the U.S. and Europe, Frasers appears to be focusing on former British colonies in the Middle East, South Africa and the South Asia Pacific regions.
Frasers established a foothold in the U.S. market with the acquisition of Bob’s Stores and Eastern Mountain Sports but abandoned that strategy, selling.
As Accent Group’s largest shareholder, Frasers said it would “work closely with Accent to continue expanding its existing presence across the region’s sports retail market, with the potential to explore opportunities in further retail and business segments.” Frasers acquired a 14.65 percent strategic investment in Accent Group Ltd in August 2024.
“Since acquiring a strategic shareholding in Accent, we have developed a robust partnership between Frasers and Accent,” commented Michael Murray, CEO of Frasers Group. “Accent has an impressive, well-established platform with various sneaker concepts and a strong distribution of brands.”
The company said this partnership would offer Accent Group access to global brands owned by Frasers, including Everlast, Slazenger, Karrimor, and USA Pro. Frasers said the deal would also allow the opportunity to leverage its brand relationships with global sports brands, including Nike, Adidas, Under Armour, Asics, New Balance, and more, providing a material new growth opportunity for the company.
As part of this partnership, Frasers has also committed to raising its shareholding in Accent Group to 19.57 percent, which “underscores its confidence in Accent Group’s leadership and growth potential.”
The company will use the subscription proceeds of approximately £29 million (AU$60.4 million) to fund the initial roll-out of the Sports Direct business in ANZ. Additionally, Accent Group has acquired Frasers’ discount online fashion marketplace, MySale, consolidating Frasers’ Australian operations into Accent and extending Accent’s online presence.
Image courtesy Accent Group Ltd.
