Frasers Group, owned by Mike Ashley, has revealed its acquisition of over one million square feet of retail space across three shopping centres, marking a significant new investment in physical retail.
The shopping centres, located in Exeter, Maidstone and Gloucester, boast a combined annual footfall of nearly 17 million visitors and encompass 1.015 million square feet, as reported by City AM.
The largest deal involved the purchase of the 600,000-sq-ft Princesshay Shopping Centre in Exeter from US-based asset manager Nuveen and the Crown Estate, following its listing for sale earlier this year.
Michael Murray, Chief Executive of Frasers, stated that the deal “reinforces [the company’s] commitment to investing in physical retail… Such acquisitions unlock new growth opportunities for our retail concepts, while revitalising high streets and physical shopping locations up and down the country”.
Murray further emphasised that investment in brick-and-mortar was a “top priority” for Frasers.
Despite retail footfall remaining persistently below pre-pandemic levels, total footfall saw a month-on-month increase in September, growing by 0.9 per cent. This marked the first improvement since July 2023.
In another positive development for Frasers, shopping centres experienced a 2.3 per cent increase in footfall, a significant turnaround from a 1.8 per cent decrease the previous month.
Frasers Group is among the numerous retailers banking on a resurgence of high street shopping. Outdoor retailer Mountain Warehouse recently unveiled plans to open an additional 50 stores next year as part of an aggressive expansion strategy.
In a similar vein, UK fashion label Sosandar announced its foray into brick-and-mortar retail last month, partnering with historic Irish department store Arnotts. The brand also revealed plans for a third outlet in Gateshead’s Metrocentre, slated to open its doors in October, just in time for the crucial Christmas trading season.
Businesses are increasingly focusing on enhancing their omnichannel offerings, not solely online, aiming to enrich the in-store experience through personalisation, events, and product curation.