In a strategic move to fortify its presence in the luxury retail market, Frasers Group announces the acquisition of Matches, a distinguished luxury e-tailer, for £52 million. This pivotal acquisition is a cornerstone of Frasers Group’s elevation strategy, reinforcing its commitment to the high-end market amidst challenges in the luxury online sector, exemplified by recent industry developments like the Farfetch-Coupang deal.
Frasers Group is set to acquire the entire business from Apex Partners subsidiary MF Intermediate Limited. This move is poised to augment the luxury offerings within the group, aligning seamlessly with the success of its burgeoning Flannels chain. Nick Beighton, the current CEO of Matches and former ASOS chief, will continue to spearhead the business. Working closely with the Frasers team, Beighton aims to craft a strategy that maximizes Matches’ inherent strengths while unlocking synergies within the broader Frasers ecosystem.
Michael Murray, CEO of Frasers, commends Matches for its ‘incredible relationships with brand partners’ and expresses confidence in leveraging the group’s industry-leading ecosystem to drive synergies and foster profitable growth. Despite acknowledging the softer global luxury environment, Murray is optimistic about the strategic alignment and the potential success in the luxury retail segment.
Beighton underscores the progress made during his tenure, focusing on refining brand and product curation and enhancing day-to-day operations. Despite economic challenges, Matches has demonstrated resilient trading performance. Being part of Frasers is expected to provide Matches with greater scale, retail expertise, and financial stability to effectively serve brand partners and customers.
While Matches has faced challenges, including changes in ownership and CEO transitions, it remains a significant player among online luxury retailers. Frasers Group, known for its adept management of luxury businesses, views Matches as a valuable addition to its portfolio. Despite recent financial struggles, Matches’ historical significance in the luxury e-commerce landscape positions it as a key asset for Frasers as they navigate the evolving dynamics of the luxury retail market.
