Kindred Group’s Strategic Shift from North America
Kindred Group has informed investors of its decision to withdraw from all North American markets by the second quarter of 2024 as part of a strategic refocusing.
Following a strategic review initiated in April, Kindred will cease operations in North American regions, including online ventures in Ontario, Arizona, Indiana, New Jersey, Pennsylvania, and Virginia. The withdrawal is contingent on regulatory approvals.
Kindred’s departure follows its exit from Iowa a year ago, where it had aimed for success in multi-product states. Despite deploying its proprietary tech in New Jersey and Pennsylvania, Kindred struggled to gain significant market share amidst strong competition.
The group plans to reduce its workforce by 300, part of a broader cost-saving initiative expected to yield annual savings of £40m. Nils Andén, the Interim CEO, emphasized the necessity of these actions for Kindred’s long-term growth in core markets.
Post-exit, Kindred will concentrate on its established markets in Western Europe and the Nordics. The group acknowledges the loss of market share in the Netherlands, Sweden, and the UK during its North American venture.
Kindred’s strategy includes brand extensions, reallocating marketing investments, and enhancing product differentiation in core markets. The strategic review, including the possibility of a full or partial sale, continues throughout 2024.
Kindred’s strategic withdrawal from North America signifies a significant shift in focus, aiming to strengthen its position in traditional markets and ensure sustainable growth.
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