Like his father-in-law, Michael Murray, Frasers' current boss, is hungry for a deal. Photo: Paul Grover < p>Frasers Group chief executive Michael Murray insists he makes decisions at the retail giant, not his father-in-law Mike Ashley.
Mr Murray said he was still reaching out See Mr. Ashley for advice. , the founder of Frasers, who remains the company's largest shareholder but says he is the one driving the company's strategy.
“Mike is not on the board,” the 34-year-old said. “I sit on the board of directors along with the non-executive directors and we make decisions. You must be on the board of directors to make the final decision.”
The comments could raise eyebrows in the City, where Frasers continues to pursue deals bearing Mr Ashley's hallmarks.
The 59-year-old was well known for betting on rivals, it emerged on Friday that Frasers has become the largest shareholder in fast fashion retailer Boohoo with a 13% stake.
Frasers also recently acquired a 19% stake in Asos, a 22% stake in AO World and a 13% stake in Currys, while the company is currently suing Morgan Stanley, claiming the bank unfairly closed it because of Mr Ashley. The billionaire remains a consultant to Frasers and owns 72.6% of the company.
Yet on the Sports Direct sales floor on Oxford Street, Murray insists he is in charge.
He says , the decision to buy shares of many other retailers was made by him. Why?
“I’m not allowed to talk,” he said, calling the investment “halfway.”
“All I can do is talk about how it looks very obvious afterwards. [Luxury department store] Flannels has been acquired and it now seems normal that Flannels is part of the Frasers Group. And the game, you think: why do you need to buy 30 computers of the game? From there, everything is very obvious.”
Mike Ashley remains Frasers' largest shareholder. Photo: Kirsty O'Connor/PA
Frasers has been “very profitable since its inception,” he added, nodding to his father-in-law.
Since taking the reins in May 2022, the millennial, who is married to Mr Ashley's daughter Anna, has taken Frasers Group to a higher level. The business, which was once known for its cheap, high-stack and clearance sports socks, now revolves around department store Flalanels, which sells Prada and Moncler. Flashy TV and tube advertising convinces shoppers that they too can dress up like a popular rapper or Premier League footballer.
What's next? House of Fraser is undergoing changes – and the brand may disappear altogether.
“When we bought the Fraser business it was a broken business,” Mr Murray said, referring to his time as a consultant at what was then Sports Direct.
“We are completely have changed. operating model. It was basically a concession, the stores were too big, there was not enough investment in them.
“Our vision for the future is that House of Fraser will shrink and Frasers will grow.”
p>rebranding is more than just a cosmetic process. Instead of operating as a traditional department store, it wants to reimagine the space and fill it with Frasers Group's own brands.
“We're just obsessed with creating what Frasers should be and working towards that answer,” he said he.
This shift will give the company more control and flexibility, allowing it to easily adapt if things go wrong. sells well or poorly. This will also give the company full ownership of all the money in the till.
The new stores will also be smaller. “Most department stores could get the same turnover by occupying half the space,” Mr. Murray said, adding that traditional department stores ended up buying products to fill the space rather than thinking about what would actually sell.
House of Fraser is changing – and the brand may disappear altogether. Photo: Geoff Robinson Photography/Shutterstock
Landlords have been debating for years over what to do with large empty department stores after Debenhams went bust and John Lewis closed several branches.
It is estimated that more than two thirds of Debenhams stores remain empty after two years ago the company came under administration. As of the beginning of this year, about 2,000 chain stores were empty.
More than 20 House of Frasers stores have also closed since Mike Ashley bought them out of administration in 2018.
Mr Murray said he gets “a lot of advertising about how many House of Frasers stores there are I closed Fraser, but no one really talks about how many I opened.”
Eight smaller format Frasers stores have opened this year, and there are plans to open more.
As well as Ashley, who handpicked Murray as his successor, is the current Frasers chief overseeing the deal.
He is in talks with former landlords House of Frasers to take over the vacated premises and operate several businesses in the former department store premises. As a result, Sports Direct will occupy some of the top floors and Frasers will occupy the lower floors.
Mr Murray said: “This allows the landlord to provide us with space at an affordable price. We're giving them a solution for them and a solution for us because Sports Direct gets the space it needs and Frasers gets a high street presence.”
Expansion plans do the same as most others. closing the store. Companies such as Wilko, Joules and Made.com have fallen into administration over the past year.
Since Woolworths went bust in 2008, it has been “survival of the fittest,” Mr Murray said. “Retail really is a lot more complex. Only the strong will survive, and they will polarize. Anyone who is marginalized in this environment is not good enough.”
High tariffs and taxes for business do not help.
“The truth is there's really no incentive from the government,” Mr Murray said. “We could do a lot more.”
He said it was “very difficult” for retailers to invest in Britain. “It’s not very attractive to new brands coming to the UK. When was the last time you heard of a new retailer opening stores across the UK?
As well as store closures and high tax burdens, shoplifting has reached crisis levels.
At Flannels stores, Mr Murray said smaller entrances made it harder for thieves to quickly grab items and leave. This meant Frasers “didn't look at it as seriously as other retailers.”
It is a problem, however, and Frasers is among a group of retailers using facial recognition cameras to try to curb shoplifting. .
The policy has been criticized by privacy advocates. However, Mr Murray asked: “What is the alternative to reducing this crime?”
Despite the challenging environment, Frasers is thriving. In its latest report, the company showed a 40% rise in annual profits to £478m. She said the achievement was achieved because young buyers were oblivious to cost-of-living pressures. Revenue rose 15% to £5.5bn.
Mr Murray attributed the success to the group's diversity of brands – it sells high-quality products at Flannels and cheaper alternatives at Sports Direct – which helped it navigate On the market. recent cost cuts.
Now cash-rich, Frasers plans to strengthen the presence of its Sports Direct business on the high street by opening new outlets in prime shopping centers it previously “couldn’t afford”.
As for how Mr Murray plans to run the business in the long term, he said: “Take out your crystal ball, where will we be in 10 years? If anyone can tell me that he should bet on the lottery because everything is constantly changing.”
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