THG PLC (LSE:THG) has sold its luxury goods website, including Coggles.com, to Frasers Group PLC and struck a multi-year partnership to provide online and logistical support for the company founded by Mike Ashley.
Frasers Plus, a 'credit and loyalty' platform that acts as a buy-now-pay-later system is being integrated into Ingenuity's online checkout, so it will be available to both THG's Beauty and Nutrition customers, as well as to Ingenuity clients.
Online shopping specialist THG also provided a trading update, where it maintained full-year guidance after a third consecutive quarter of year-on-year group revenue growth.
However, growth for its beauty division and Ingenuity platform was offset by a decline in online nutrition sales, as well as FX headwinds in Asia.
Nutrition sales were hit by a rebranding process, the Manchester-based company said, which had caused availability gaps.
By the end of the third quarter, around 80% of products by revenue are planned to be under new branding, with the products available in many major retail chains including Costco and GNC in the US, and Boots, WHSmith and major supermarket chains.
Frasers partnership
The partnership with Frasers is expected to "mutually enhance retail operations at both groups", with the Frasers Plus loyalty scheme integrated into THG's Ingenuity platform and the online shopping group providing logistical support for Frasers in Australia.
Frasers said it will benefit from THG's courier management services to "drive the efficiency and performance of Frasers' Australian fulfilment and logistics operations, supporting the group's international expansion".
Along with the sale of Coggles.com, THG is selling a "portfolio" of luxury goods websites, which will continue to be supported by the Ingenuity platform's technology, digital marketing and fulfilment services after the disposal.
It said the 'luxury division' made £43 million in sales in the past year and almost broke even.
Also as part of the deal, Myprotein will be sold in Frasers' Sports Direct chain