Exclusive: Frasers Group CCO on retail media launch, brand partnerships and membership roll out

Frasers Group is kicking off the summer season with the launch of its own retail media network, which chief customer officer David Clark claims will be the “broadest, deepest and most insightful network outside of the grocery and pure play space”.

The network, named Elevate, is powered by the Sports Direct owner’s first-party data and offers hyperpersonalised advertising across the group’s digital and over 800 physical spaces, and comes as part of a wider effort by the group to upgrade its consumer proposition after years of modernising its store portfolio and digital estate.

The retail giant has been busy opening new Flannels and Sports Direct flagships across the UK, as well as converting some of its House of Fraser department stores into new Frasers concept stores under a multi-billion pound investment.

“We’ve been working with our brands in a classic brand partnership sense, but we wouldn’t call what we did before retail media. Now we’re moving into a whole new space,” says Clark.

The group has been piloting some of its newly-developed capabilities such as in-store screens and sponsored products with its brand partners including Adidas, Coach, Creed, Puma, Skechers and Under Armour ahead of the formal launch, which Clark notes “have been super successful already”.

The group is hoping its new retail media venture will be a successful revenue driver in the same way other retail players have found it to be.

“The grocers now are generating significant sums [from retail media]. We don’t want to put a specific number on it, but we think that the size of prize is large,” says Clark.

Creating a retail media network

Clark has bold ambitions for the group’s retail media offer that he believes will be one of the “broadest, deepest and most insightful network” in the industry.

“We’re launching with something that we feel super comprehensive, but there’s also a huge amount for us to go out over the next two, three years,” he says.

Clark says this retail media roll out is “not a pilot” and will see the retail group “opening up inventory across our on site estate through sponsored products, sponsored on-site ads, banners and brand stores”.

Clarks says the retailer “will be opening up our in-store estate, whether that’s through digital screens, windows and leveraging in-store inventory” across more than 750 stores under Sports Direct, Flannels and Frasers banners, as well as across the group’s shopping centre portfolio and over 60 Everlast gyms. The retail group will also leverage data from the 31 million consumer records it has across the business.

“We’ve also tied in with one of the largest out-of-home providers in the UK to be able to leverage out-of-home through our through our platform,” Clark notes.

Underpinned by membership

Clark shares that Frasers’ new retail media network is complemented by the group’s membership programme, which it launched back in February at Sports Direct and rewards members with personalised offers and exclusive benefits.

He notes the company has seen “significant engagement and growth” in customers registering to the scheme ahead of plans to roll out the offer across the rest of its UK fascias this financial year.

“We’re already seeing significant uptick in the annual customer value of [those] opted into the member programme versus those that aren’t,” says Clark.

He explains the group sees the scheme as “a real route to get to know our customers, bring our brands and customers closer together and really build stronger relationships with our customers”.

“We currently have a relatively low cross shop between our brands, and we see a huge opportunity to grow value across the group, and membership really gives us a route to be able to do that.”

Clark says the group is focusing on launching member across its Frasers and Flannels business “this side of peak” and has plans to roll out the proposition “across five to 10 territories in Europe over the next two to three years”.

“We’ll certainly be looking to expand retail media into those markets when appropriate,” he adds.

Frasers Group has spent the last decade upgrading its store estate, but now its turned its attention to growing its relationship with customers.

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