Frasers Group became the largest single shareholder of the Boohoo Group earlier this month (October) and it has now upped its stake again to 15.1% from 13.4%.
Frasers Group’s initial foray into Boohoo began in June, with the strategic ownership of a 5% stake. The company’s rationale at the time was based on identifying “potential synergies” between Boohoo and two of its brands, I Saw It First and Missguided, with aspirations of fostering collaborative efforts.
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This upturn in Frasers’ stake in Boohoo coincides with a recent period of widened losses for the online retailer.
Boohoo reported earlier this month that its group revenue over the six months to August fell by 17% to £729.1m compared to the same period last year due to the financial constraints affecting consumers and it now has a 12% to 17% drop forecast for the year ending in February 2024.
Boohoo has embarked on price reductions to address the cost-of-living crisis and attract budget-conscious consumers while simultaneously streamlining its operational costs.
Frasers Group’s acquisition of stakes in Boohoo and other rival retailers forms part of the conglomerate’s ongoing expansion strategy in the retail sector.
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By GlobalDataFrasers Group purchased Missguided last June for £20m after the online retailer went into administration and it bought I Saw it First in July.
There are reports that Frasers Group could be making 100 employees redundant from its online fashion and home retailer Studio Retail.
According to The Lancashire Telegraph the potential redundancies, which are under consultation are roles situated at the retailer’s base in Accrington, East Lancashire.
However, the news publication claims staff were told of plans to relocate the business to Derbyshire, which is nearly 100 miles away.
The email allegedly said: “To improve operational efficiency, a proposal, subject to consultation, has been made to relocate the Customer Services operation from our existing Clayton-Le-Moors office to the Shirebrook office, and the Studio Customer Services Contact Centre in Clayton-Le-Moor will cease.
“On Thursday, October 12, our colleagues who are directly impacted by this announcement were briefed on the proposed changes and in the coming days will be contacted to explain what this means for them and their roles in more detail.”
The news publication adds that the email explained Frasers Group would be working with the USDAW union to “support colleagues throughout this process.”
Frasers Group had not responded to Just Style’s request to comment at the time of going to press.
