Frasers Group, under Mike Ashley, has committed to a significant expansion in brick-and-mortar retail, acquiring over one million square feet of shopping center space.
- The acquisitions include three centers located in Exeter, Maidstone, and Gloucester, boasting a combined annual footfall of nearly 17 million visitors.
- Princesshay Shopping Centre in Exeter, the largest acquisition, was purchased from Nuveen and the Crown Estate.
- Frasers is doubling down on brick-and-mortar despite post-pandemic challenges, as part of a broader trend among retailers to revitalize high street shopping.
- The company aims to enhance in-store experiences as part of their omnichannel approach, aligning with recent industry trends.
Frasers Group has taken a decisive step towards solidifying its presence in physical retail by acquiring over one million square feet of retail space. This strategic move includes the purchase of three major shopping centers located in Exeter, Maidstone, and Gloucester, which collectively attract an annual footfall of nearly 17 million visitors. Such an investment underscores the company’s confidence in the resilience of high street shopping, even as digital retail continues to grow.
The highlight of these acquisitions is the Princesshay Shopping Centre in Exeter, spanning an impressive 600,000 square feet. This significant deal was finalized with US asset manager Nuveen and the Crown Estate, following the listing of the property earlier this year. Michael Murray, the Chief Executive of Frasers, emphasized that this acquisition reaffirms the company’s steadfast commitment to investing in physical retail. He noted that such investments not only unlock growth opportunities but also play a critical role in revitalizing high streets across the nation.
Despite ongoing challenges in the retail sector, with footfall levels remaining below pre-pandemic figures, there has been a notable month-on-month increase. Retail footfall grew by 0.9% in September, marking the first rise since July 2023, and shopping centers saw a 2.3% increase, reversing a previous 1.8% decline. This upward trend suggests a recovering interest in physical retail locations, aligning with Frasers’ strategic focus.
The broader retail industry is witnessing a resurgence in high street shopping, with companies like Mountain Warehouse and UK fashion label Sosandar also expanding their brick-and-mortar presence. These trends highlight a growing emphasis on enhancing the in-store customer experience through personalization and curated events, a key aspect of Frasers’ approach to their new retail spaces. Such developments are crucial as businesses aim to balance their online and physical stores to offer comprehensive omnichannel experiences.
Frasers Group’s strategic expansion into physical retail highlights a renewed confidence in high street shopping, setting the pace for industry-wide revitalization efforts.
