“The latest H1 2023/24 results show that Frasers Group’s strategy of elevating its retail offering through bigger and better stores for Sports Direct and Flannels has paid off. The company has benefited from a strong performance from Sports Direct, which accounts for 53.6% of total group revenue, and remains the leading non-specialist fashion retailer, according to Mintel’s recently published Clothing Retailing – UK, 2023. As part of a focus on renovating older stores and opening new flagship sites, such as the 50,000 sq ft Sports Direct in the Manchester Arndale shopping centre, it is seeking to raise the brand’s perceptions in order to attract more high-profile brands.

While the group is continuing to expand its Flannels department store brand in-store and online, under its premium lifestyle unit both, a slowdown in the luxury market that is set to continue into 2024 is likely to impact the rate of growth of this side of the business in the short-term.

The group’s acquisition spree has given it a diverse portfolio of brands, supported by a joined up operating system, merchandising and supply chain operation. However, this has also led it to be vulnerable to volatility in certain categories, with the fashion Studio Retail business and gaming fascia Game UK both suffering falling revenue. Over the short to medium-term the expansion of its international business will help mitigate some of these declines, as it looks to become the leading sports retailer in the EMEA.”