Last week, Frasers Group purchased an 8.8% stake in Under Armour. The move is not necessarily a precursor to a full acquisition (the athleisure brand’s Chief Executive, Kevin Plank, retains majority control). Nor, perhaps, is it the most notable investment made by Mike Ashley’s retail conglomerate this year, considering the purchase of Harvey Nichols earlier this year.
However, the stake purchase could be useful as a bellwether for the possible direction of Frasers Group.
Analysing YouGov Profiles data, we can see how Under Armour customers compare to those of Sports Direct, the retail group’s sporting goods chain. Demographically, there are some strong similarities: both have around the same proportion of consumers aged 18-34 (UA 33%; SD 32%); 35-54 (UA 45%; SD 46%); and over-55 (UA 22%; SD 22%). However, Sports Direct customers are slightly more likely to be parents of children under 18 (39% vs. 31%), while Under Armour customers are a little more likely to be in full-time employment (56% vs. 52%).
But looking at our attitudinal data sheds more light on what Under Armour could offer Sports Direct customers. For one thing, the athleisure brand’s customers are more likely than the general public to be Sports Direct customers as well (28% vs 11%). UA’s consumers are also notably more likely than the population as a whole to consider shopping at Sports Direct (42% vs 24%).
The data suggests that Under Armour’s products may expand the appeal of Ashley’s retailer. Among other things, Under Armour customers are notably more likely that those of Sports Direct to say that they don’t mind paying extra for good products (81% vs. 66%) and are more likely to opt for premium products and services (38% vs. 22%).
Frasers’ Group has been moving in a more premium direction for some time – recently announcing a dedicated luxury division and increasing its stake in Burberry. The Under Armour investment suggests this trend is also playing out in the group’s sportswear division.
This article originally appeared in City A.M.
Methodology
YouGov BrandIndex collects data on thousands of brands every day. Scores are based on daily surveys of UK adults. Data is weighted by age, gender, region, social grade, and ethnicity using a raking methodology.
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