The fishing tackle retail store market is highly fragmented and offers the opportunity for Angling Direct to act as one of the primary consolidators in this market. The acquisition of existing businesses will enable the Company to gain market share and acquire new customers more quickly than by organically opening new sites.
The Company believes the specialist fishing tackle retailer tends to be a single unit owner-managed retail operation, which is often run as a life-style business. The profitability from these business operations has reduced significantly in recent years due to the increase in online sales, stock investment and general operating and direct costs. The Company has received a number of approaches from potential vendors, which range from small single unit retailers to larger multi-store retailers with an online presence, to acquire their businesses.
Angling Direct expects to re-brand any existing fishing tackle store to Angling Direct upon acquisition.