Mike Ashley-owned Frasers group has announced the acquisition of over one million square feet of retail space across three shopping centres in a huge new bet on physical retail.
The shopping centres – in Exeter, Maistone and Gloucester – have a combined annual footfall of almost 17 million visitors and 1.015 million square feet.
The biggest of these deals, the acquisition of 600,000-sq-ft Princesshay Shopping Centre in Exeter, was made with US-based asset manager Nuveen and the Crown Estate after the site was put up for sale earlier this year.
Chief executive of Frasers, Michael Murray, said 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 added that investment in brick-and-mortar was a “top priority” for Frasers.
Although retail footfall remains stubbornly below pre-pandemic levels, total footfall finally grew month-on-month in September, by 0.9 per cent. This was the first time that footfall had shown an improvement since July 2023.
In another good sign for Frasers, shopping centres saw a 2.3 per cent increase, in a big swing from a 1.8 per cent decrease last month.
Frasers is one of many retailers placing a bet on shoppers returning to the high street. Mountain Warehouse recently announced it would open another 50 stores next year as part of a rapid expansion plan.
UK fashion brand Sosandar similarly announced its expansion into in-store retail with historic Irish department store Arnotts last month. Last month it also announced a third store in Newcastle’s Metrocentre, which is expected to open in October – in time for the key Christmas trading period.
Companies have been increasingly investing in their omnichannel offering, rather than just online, as they look to boost in-store experience with personalisation, events and product curation.