What: THG (The Hut Group) has agreed to sell its luxury goods websites, including Coggles, to Frasers Group, the owner of Sports Direct, as part of a strategic partnership.

Why it is important: This deal allows THG to streamline its portfolio and integrate Frasers' credit and loyalty scheme into its e-commerce platform, potentially boosting revenue opportunities and improving cash flow stability.

UK-based e-commerce group THG has announced a strategic partnership with Frasers Group, which includes selling its luxury goods websites like Coggles, generating £43 million in annual sales, to Frasers. Additionally, Frasers' credit and loyalty scheme, Frasers Plus, will be integrated into THG's Ingenuity ecommerce platform. This move aims to streamline THG’s portfolio and open up new revenue opportunities. The partnership will also see THG’s protein products sold in Sports Direct stores. Analysts view this collaboration positively, expecting it to contribute to THG's stable and sustainable free cash flow generation.

THG signs tie-up with Sports Direct owner Frasers