View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
June 6, 2022

The week in review: Frasers Group boldly enters new territory with Missguided buy

Despite the very recent departure of its chief and retail magnate, Mike Ashley, Frasers Group looks committed to its goal of aggressive expansion, last week announcing it is taking fast-fashion pureplay Missguided under its wing, as part of a GBP20m rescue deal.

By Hannah Abdulla

The takeover of Missguided is a little off-course for Frasers Group; with its mostly online presence it is a far cry from previous acquisitions like Hugo Boss and House of Fraser (HoF) and Flannels, as well as its own Sports Direct brand which all have a strong retail presence.

What is even more interesting is that Missguided has built its reputation as a fast-fashion player; buy it cheap, change it often. Again we are sort of left wondering how Missguided fits into Frasers Group’s ambition to become “the Harrods of the High Street”, which it boldly declared not so long ago.

But analysts are convinced it is a good move and Frasers Group will be able to use its operational scale to strengthen the Missguided brand and make it more competitive.

One thing we can say with confidence is Frasers Group does appear to be getting its ducks in a row. It is happily offloading brands that don’t fit into its wider vision, like the recent disposals of US brands Bobs Stores and Eastern Mountain Sports and is investing further in brands that are a better fit – recently taking a larger stake in Hugo Boss and acquiring Studio Retail Group which collapsed into administration.

What will be worth watching is how Frasers seeks to grow the Missguided brand. The general consensus is that Missguided’s collapse came from its inability to compete with its peers, Asos and Boohoo. Could a more successful path be charted in standalone stores? Or will we see Missguided concessions appear within existing HoF stores?

It’s already had a pretty successful run with concession stores in Asda and we do believe a continuation of this strategy will help its growth as the post-pandemic consumer looks to rebalance their online and in-store shopping options. In any case, watch this space.

Frasers Group ventures into pureplay with GBP20m Missguided acquisition
Frasers Group is adding its first fast-fashion pureplay to its roster, after acquiring Missguided in a GBP20m (US$25.2m) deal; a ‘punt worth taking,’ according to a GlobalData apparel analyst.

Missguided demise down to ‘lack of competitiveness’
Missguided’s failure to remain competitive against the likes of Boohoo and Shein is what has ultimately led to its demise, industry onlookers believe, as the pureplay fell into the hands of administrators.

Bangladesh court orders injunction against Edinburgh Woollen Mill
EWM Group, the owner of brands including Edinburgh Woollen Mill and Peacocks has rejected claims it deliberately filed for bankruptcy to avoid paying its suppliers as “unfounded”, as a Dhaka court has imposed a temporary injunction on it conducting business with any factory in Bangladesh.

The effect of reducing free on board (FOB) prices on garment costs
Apparel industry consultant David Birnbaum discusses how changes to the way the global garment industry operates have markedly altered the effects of free on board (FOB) prices on garment costs.

Inditex signs deal for Nanollose ‘tree-free’ lyocell
The sustainable fashion brands leading the charge in China
Nike rolls out Re-Creation to repurpose deadstock, realise circular vision
Arklyz aggressive expansion continues with Shoe City takeover

Related Companies

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Style