Frasers Group first invested in fast-fashion retailer, Boohoo with a 5% stake in June.
At the time, Frasers Group said: “Boohoo is an attractive proposition…with its laser focus on young female consumers” and explained it could see potential synergies and an opportunity to strengthen its own brand proposition in collaboration with Boohoo, most obviously with Frasers Group fast fashion digital brands I Saw It First and Missguided.
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Just Style understands Frasers Group is intrigued to see where it may be able to collaborate further with Boohoo and its latest stake increase from 6.8% to 7.8% highlights its eagerness to tap into the Gen Z consumer and cater more to the younger generation.
Investments are now widely regarded as being part of Frasers DNA.
The company looks for businesses that hold an underlying IP which aligns with its business model and then buys a stake to further its business.
Frasers’ other strategic stakes include a 26% stake in luxury fashion brand Hugo Boss and a 5.1% stake in fast fashion online retailer Asos.
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By GlobalDataCommenting on the initial 5% Boohoo stake in June, GlobalData apparel analyst Alice Price explained that Fraser’s strategic investments provided hopes for the resurgence of online fast fashion players.
Boohoo has come under fire over the last few months after The Times reported the retailer was demanding a 10% discount from its supplier in a move to cut costs.
The retailer and a number of big fashion brands were accused of misleading consumers with donation take-back schemes last month to which a Boohoo spokesperson shared: “We are firm supporters of industry efforts to reduce the number of items that would otherwise go to landfill and are continuing to explore the most effective ways of doing this.”
