Frasers Group US unit Bob's Stores under strategic review
August 31, 2020 - United Kingdom
Nike has cut distribution ties with the Frasers Group’s US subsidiary Bob’s Stores, leading the latter to place the branch under a strategic review, according to the Mike Ashley-owned British retail company, which recently said Nike, as of March next year, will no longer distribute to Bob’s Stores, which trades from 24 stores across the United States.
The company added that Nike’s decision does not directly affect the rest of the Frasers Group, which includes UK-based sportswear giant Sports Direct.
Frasers Group added the Bob’s Stores estate “does not include any of the new elevated stores which are core to the Frasers Group elevation strategy”.
“Frasers Group continues to invest in its store portfolio and brand relationships and remains committed to its elevation strategy,” the company was quoted as saying by British media reports.
Frasers Group had acquired Bob’s Stores in 2017. Nike’s decision to snap ties with Bob’s Stores is part of its wider global strategic shift to increase its e-commerce and direct-to-consumer sales.
The news comes after Frasers Group recently bought DW Sports’ gym and fitness business out of administration for £37 million.