- Frasers Group has taken up a 5% stake in online fashion firm Boohoo
- It comes after it built an 8.9% stake in Currys.
- Frasers last week increased its stake in electricals retailer AO World to 21% from 19% and in ASOS to 10.6% from 9.9%.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’Frasers Group is putting its fingers into more retail pies snapping up slices of companies which have proved unappetizing for investors in recent years. Boohoo and Curry’s have struggled with falling sales as the cost-of-living crisis affects discretionary spending, but Frasers Group clearly sees significant value in both companies, once inflationary winds die down. It also bought up a stake in AO World, the electrical retailer hit by the post-pandemic shifts in spending, which has been showing positive signs from its turnaround strategy. Frasers has also upped its stake in ASOS just as its plan to return to profits appears to be bearing some fruit, after being sideswiped by fashion fans’ reluctance to splash the cash as they tighten their belts.
Although Frasers, now headed up by Michael Murray, Mike Ashley’s son in law, is seeking greater returns through an elevation strategy by buying into more up-market brands like Flannels and Hugo Boss, it’s clear the company still sees value to be gained through investments in the electricals market and the online fashion space. As lives of younger generations are increasingly spent online, through entertainment and shopping habits, Frasers Group sees upping stakes in these companies as providing channels into those markets.”