Frasers Group has completed the acquisition of Wiggle, a prominent online retailer known for its comprehensive selection of cycling and sports equipment. This development comes as Wiggle faced financial challenges, leading to its administration. The acquisition represents a strategic expansion for Frasers Group, enhancing its presence in the sports and leisure market with its existing brands such as Sports Direct, House of Fraser, and Evans Cycles.
The transaction, valued at less than £10 million, encompasses the brand and intellectual property rights of both Wiggle and Chain Reaction Cycles. This acquisition is a part of Frasers Group’s broader strategy to diversify and strengthen its market position, following its recent purchases of other retail entities, including ProBikeKit and SportScheck from Signa Sports United (SSU).
Despite the strategic growth opportunity this acquisition presents, it carries with it a significant impact on Wiggle’s workforce. It is anticipated that 447 positions at Wiggle’s Portsmouth headquarters and Wolverhampton distribution centre may be affected, highlighting the acquisition’s profound implications on employment within the company.
Frasers Group’s aggressive acquisition strategy over the past year, which includes investments in Curry’s, AO World, and ASOS, reflects its ambition to forge a diversified retail empire. By integrating Wiggle into its portfolio, Frasers Group not only solidifies its footprint in the cycling and sports retail sector but also appeals to a broader demographic interested in active and outdoor lifestyles.
