Frasers Group takes stakes in Currys, Boohoo

Mike Ashley’s Frasers Group has taken stakes in electricals retailer Currys and online fashion retailer Boohoo.

In a filing released after the market close on Monday, Frasers disclosed that it had taken an 8.9% stake in Currys and in a filing earlier on Tuesday, it disclosed a 5% stake in Boohoo.

The company said: "Driving growth through strategic investments is a core part of Frasers' DNA. Under Michael Murray's leadership, we continue to build on our long track record of establishing supportive shareholder positions in attractive retail companies. We have a clear strategy to identify opportunities to invest in businesses which complement our existing sport, premium and luxury businesses, or help us to build and further utilise our sector-leading ecosystem.

"Boohoo is an attractive proposition to us with its laser focus on young female consumers. 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.

"Our investment in Currys provides us with a valuable opportunity to build on our foothold in the electricals industry as well as deepening the existing relationship between Currys and Studio, with the potential for further collaboration between the two. Through this investment, we also believe Currys will benefit from Frasers' deep retail know-how and our sector-leading ecosystem."

It comes just a week after the company bought a 21.3% interest in online electricals retailer AO World.

Earlier this month, Frasers also increased its stake in online fashion retailer Asos to 10%.

The group, which owns House of Fraser, Sports Direct, Flannels and Jack Wills, among others, also owns a stake in Hugo Boss.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Although Frasers, now headed up by Michael Murray, Mike Ashley’s son in law, is seeking greater returns through an elevation strategy by buying into more up-market brands like Flannels and Hugo Boss, it’s clear the company still sees value to be gained through investments in the electricals market and the online fashion space.

"As lives of younger generations are increasingly spent online, through entertainment and shopping habits, Frasers Group sees upping stakes in these companies as providing channels into those markets."