Frasers Group has upped its stake in Boohoo once again, reinforcing its “ongoing expansion strategy” in the fashion retailer.

The British fashion conglomerate, which owns retailers Sports Direct, House of Fraser and Flannels, among others, became the largest single Boohoo shareholder earlier this month (October).

Frasers Group has gradually been increasing its share of the Boohoo group ever since, with upped stakes being placed in July and again in September.

Commenting on the initial 5% Boohoo stake in June, GlobalData apparel analyst Alice Price explained that Frasers Group's strategic investments provided hope for the resurgence of online fast fashion players.

Frasers Group had said it made its first stake in Boohoo because the retailer was an “attractive proposition” with its “laser focus on young female consumers”.

The group added: “We see potential synergies and an opportunity to strengthen our own brand proposition in collaboration with Boohoo, most obviously with Frasers Group brands I Saw It First and Missguided.

The group also raised its stake in Boohoo rival Asos last week, up from 22.7% to 23%.

Frasers Group has been diversifying its investments into online fast fashion brands. It purchased I Saw it First from Boohoo in July 2022 and Missguided last June, which it purchased for £20m after the online retailer went into administration.

Earlier this month, Boohoo warned that its full-year sales could fall by as much as 17% due to cash-strapped customers tightening their belts. In the six months to August 2023, UK revenues for the group fell 19%, despite discounting on the sites.

While retailer Asos saw sales decline by 10% in the year to 3 September 2023. 

GlobalData's Price said at the time: “Despite these unfavourable results, these pure-plays still remain well ahead of pre-pandemic levels, so Frasers Group’s investments should turn out to be beneficial.”

Price also believed Frasers Group was being “strategic” with its continued investments and that, despite the recent downturn for many brands, the UK’s online apparel sector is expected to grow 12.7% between 2023 and 2027.