Frasers Group is significantly investing in brick-and-mortar retail with over 1 million square feet in new shopping centres.
- Properties in Exeter, Maidstone, and Gloucester record almost 17 million annual visitors, enhancing their retail portfolio.
- Princesshay Shopping Centre in Exeter, a key acquisition, adds 600,000 square feet purchased from Nuveen and the Crown Estate.
- Despite past declines, there’s a recent uptick in retail footfall, indicating a potential recovery in physical retail presence.
- CEO Michael Murray underscores this as a core strategy, affirming commitment to revitalising high streets nationwide.
Frasers Group, under the leadership of Mike Ashley, is doubling down on its commitment to physical retail. The acquisition encompasses over one million square feet across three strategic locations in Exeter, Maidstone, and Gloucester. These centres cumulatively attract nearly 17 million visitors each year, reinforcing the Group’s extensive retail footprint and aligning with a broader industry emphasis on tangible shopping experiences.
The deal’s centrepiece is the procurement of the Princesshay Shopping Centre in Exeter, an expansive 600,000 square foot property acquired from Nuveen and the Crown Estate. Michael Murray, the Chief Executive of Frasers, asserted that such acquisitions are crucial for unlocking growth opportunities and reinvigorating traditional high streets, which have been sluggish but show hints of recovery. “Investment in physical retail remains a top priority,” Murray emphasised, highlighting the firm’s strategic pivot to enhance their physical presence.
Despite the challenging retail environment, where shopper footfall numbers have not bounced back to pre-pandemic levels, there has been a notable improvement. September recorded a 0.9 percent increase in overall footfall, while shopping centres owned by Frasers saw a more pronounced 2.3 percent rise, a significant turnaround from previous months.
Frasers Group’s confidence in the physical retail market echoes broader trends within the industry. Retailers like Mountain Warehouse and Sosandar are also leveraging the appeal of physical outlets, suggesting a resurgence of consumer interest in experiential shopping. These developments signal a potential revival of the high street, driven by enhanced in-store experiences and strategic property acquisitions.
Frasers Group’s continued investment in physical retail evidences a strategic foresight, aiming to revitalise shopping hubs and invigorate consumer engagement.
