Fitbug share price rises as it runs away from retail to focus on getting workers to walk

 
Oliver Gill
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Fitbug won't be operating in the retail space anymore (Source: Getty)

Fitbug has decided to exit the retail market in a strategic shake-up that will see the firm change its name to Kin Group.

The Aim-quoted company this morning revealed plans to focus on the corporate space. They will be put to shareholders at its forthcoming annual general meeting.

"Changing the company name signifies a further major step in our ambitious transformation strategy," said Fitbug chief exec Anna Gudmundson.

We've effectively shut down the consumer business to focus on the growing corporate wellness market.

Read more: Revealed: Just how fit are Crossrail workers?

The firm said recent reports by the Global Wellness Institute indicated encouraging people to be more mobile at work was a market estimated to be worth $43.3bn (£34.9bn).

Fitbug recently reported MTR Crossrail workers had been encouraged to walk further by wearing its devices.

It is as a result of a string of the successful partnerships, such as MTR Crossrail, that Fitbug has decided to reposition itself.

Read more: Fitbug shares are back: Here's what's going on

It has also enlisted high-profile ambassadors such as Olympic gold medalist Sally Gunnell to help champion the message of workplace health.

The directors of Fitbug chose the name Kin because it signifies "interconnectivity of people and their communities and colleagues". The corporate buzzwords didn't stop there, as the firm went on to say its new brand wil convey "values of trust, empathy, personal, human, friendliness and inclusivity".

Shares in the £2.2m market cap firm rose two per cent in early trading following the announcement.

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