Sports Direct (LSE: SPD) is currently up close to 4% so far today, following the announcement that the company has formed a partnership with MySale Group (LSE: MYSL) to launch in Australia and New Zealand. On 18 June, Sports Direct reported that it had acquired a 4.8% stake in MySale Group, which had listed on AIM two days earlier, saying that there was “the potential to co-operate on significant collaboration and joint venture opportunities in Australasia and Asia“. This morning’s news is the first fruit of that potential.
MySale, which is the most successful online “flash sales” fashion retailer in Australia and New Zealand, will provide the e-commerce platform for Sports Direct, giving it immediate access to MySale’s existing 12 million members when the websites launch later this year.
Sports Direct has also said that it will be opening three stores in Australia and one in New Zealand, and that it will soon be announcing a partnership “with a leading Australian retail company.
Commenting on the new joint venture, Dave Forsey, Sports Direct’s Chief Executive, said:
“We are delighted to announce this partnership with MySale, which will give Sports Direct access to the tremendous markets in Australia and New Zealand and enable customers in both countries to benefit from our quality and unbeatable value. It will be great to enter these markets, where sport is a way of life. I have been really impressed by the team at MySale and look forward to working with them.”
At 724.5p, Sports Direct’s share price is up 1.7% so far in 2014, having fallen back significantly from a gain of almost 30% made by early April. But over the past five years its share price has increased by over 800%, compared with the FTSE 100’s 63% rise.
