Frasers Group, owned by Mike Ashley, is investing heavily in physical retail with the acquisition of over one million square feet of retail space.
- The shopping centres in Exeter, Maidstone, and Gloucester attract nearly 17 million visitors annually.
- The purchase includes Exeter’s 600,000-sq-ft Princesshay Shopping Centre, acquired from Nuveen and the Crown Estate.
- Michael Murray, Frasers’ CEO, emphasizes the importance of brick-and-mortar investment as a strategic priority.
- Retail footfall has shown signs of recovery, with a notable increase in September, boosting confidence in high street shopping.
Frasers Group, under the ownership of Mike Ashley, has made a significant move in the retail sector through the acquisition of over one million square feet of retail space. This strategic investment encompasses three major shopping centres located in Exeter, Maidstone, and Gloucester. Together, these locations attract nearly 17 million visitors each year, highlighting their importance in the retail landscape.
The acquisition includes a notable transaction involving the Princesshay Shopping Centre in Exeter, which spans 600,000 square feet. This deal was made with US-based asset manager Nuveen and the Crown Estate, marking a major addition to Frasers’ portfolio. Michael Murray, Chief Executive of Frasers, explained that such investments are crucial for the company’s growth strategy, offering new opportunities to revitalise high streets and physical shopping destinations across the nation.
Murray further reiterated that investing in physical retail spaces is a ‘top priority’ for Frasers, underscoring a commitment to enhancing their retail offerings and addressing the evolving needs of consumers. This statement is also backed by recent data showing a positive trend, as shopping centres experienced a 2.3 per cent increase in footfall — a promising sign of recovery for high street shopping.
The investment by Frasers reflects a broader trend within the retail industry, as numerous retailers are betting on the resurgence of physical shopping experiences. For instance, Mountain Warehouse plans to open 50 new stores, and Sosandar, a fashion brand, is expanding into physical retail. This shift showcases a renewed focus on enhancing the in-store experience through personalisation and curated products.
Such developments indicate optimism within the retail sector despite challenges. Retailers are expanding their omnichannel approach, blending online and in-store experiences to cater to changing consumer habits.
Frasers Group’s substantial investment signals confidence in the future of physical retail, aiming to rejuvenate high streets across the UK.
