Sports Direct gives a new life to House of Fraser
It was a decisive day for House of Fraser when it announced its readiness for receivership when Mike Ashley stepped ahead to rescue this department store. The founder of Direct Sports really took interest in giving a new life to the store by buying it for 90 million pounds. Now the question remains, whether it will also turn into “Selfridges of sports?”
Ashley group has acquired all the business of House of Fraser, all of its UK stores and the stocks in the share market. This move has let the future of the 59 HoF unclear among which 31 were ready for closure jeopardizing 17,000 jobs. Not only this, more than 6000 are also set to be lost as the deal has reached to the point of legal completions. Still, even after its sell, HoF needs 40 million pounds more to pay its rent bills.
The deal was not that easy as Mike Ashley also faced competition with other buyers like Phillip Day, owner of The Edinburgh Woollen Mill Group, which owns Peacocks, Jaeger, Jane Norman, Austin Reed, and other high-street retailers. However, it was clear that Mike is ready with cash and all its plan to rejuvenate the store which led to backing off of all the other contenders.
What is next for House of Fraser?
It is expected that the multi-channel experience of Direct Sports will benefit HoF, turning it’s ill-fate into healthy survival in the industry. Due to recent change in cutomer expectation, high inflation, indirect modes of reaching to customers and the need for an innovative marketing approach and customer service to enhance user experience, more radical changes are required to revive HoF. Direct Sports is ready to relish this challenge and offer great experience to HoF customers through online, physical, and social sales. The target is to keep pace with customers expectation in the way they want.