Frasers Group is set to make a significant leap in its international expansion plans by launching Sports Direct in Australia and New Zealand through a newly inked long-term partnership with Accent Group. This ambitious agreement, announced on April 15, 2025, aims to establish up to 100 Sports Direct stores across the two countries, marking a notable increase in the brand's global footprint.
The partnership, which spans 25 years, is expected to boost the total number of Sports Direct locations by approximately 14 percent. Currently, Sports Direct operates over 500 stores in the UK, with an additional 170 in the EU and 35 in Malaysia. This expansion is part of Frasers' broader strategy to enhance its international presence and capitalize on the growing demand for sports retail in the Australasian market.
Michael Murray, CEO of Frasers Group, expressed enthusiasm about the collaboration, stating, "Since acquiring a strategic shareholding in Accent, we have developed a robust partnership between Frasers and Accent. We’re looking forward to expanding our partnership to launch Sports Direct in Australia and New Zealand, working towards our bold plan of opening 100 stores. This reaffirms our commitment to drive growth of the Sports Direct brand internationally and marks a significant step forward in our ambition to becoming the leading global sporting goods retailer."
The agreement also includes a significant financial commitment from Frasers, which has increased its shareholding in Accent Group from 5% to 19.57%. This move was facilitated by a subscription proceeds of approximately £29 million (AU$60.4 million), earmarked for the initial rollout of at least 50 Sports Direct stores in the region. The partnership will ensure that the new stores feature a diverse range of popular brands, including Everlast, Slazenger, Karrimor, Nike, Adidas, and Under Armour.
Accent Group, a well-established distributor of premium lifestyle and sports footwear, will play a crucial role in this expansion. Daniel Agostinelli, CEO of Accent Group, highlighted the potential of the partnership, stating, "Frasers and Accent see a significant opportunity to bring a new and exciting global sports business to the Australian and New Zealand markets. 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 initial phase of the rollout will target at least 50 stores and an online offering, aimed at capturing the attention of the growing sports retail market in Australia and New Zealand. This strategic move not only strengthens Frasers' position in the region but also allows Accent Group to enhance its existing brand relationships, particularly with major players like Adidas, Nike, and New Balance.
As part of the agreement, Accent Group has also acquired Frasers' discount online fashion marketplace, MySale, consolidating Frasers' operations within Australia and streamlining its business model. This acquisition is expected to further bolster Accent's portfolio and operational capabilities, providing a more comprehensive retail experience for consumers.
Frasers' stock showed a positive response to the announcement, with shares rising by 1.54% or 9.5p to 625.00p on the day of the announcement. This uptick reflects investor confidence in Frasers' strategic direction and growth potential, particularly in light of the challenges faced in the retail sector over the past year.
The partnership with Accent Group is a pivotal moment for Frasers Group as it looks to expand its influence in the global sporting goods market. The company has been actively pursuing growth opportunities overseas, with recent expansions in the Netherlands, Africa, the Gulf, and Egypt. This latest initiative in Australia and New Zealand represents a significant milestone in Frasers' international growth strategy.
In conclusion, the collaboration between Frasers Group and Accent Group is poised to reshape the sports retail landscape in Australia and New Zealand. With a robust plan to open up to 100 Sports Direct stores and a strong backing of popular brands, the partnership is set to bring a fresh and exciting retail experience to consumers in the region. As both companies work together to leverage their strengths, the future looks promising for the Sports Direct brand in these new markets.
