Frasers Group unveils new luxury unit as high-end portfolio expands, targets global growth

Frasers Group is never one to shy away from a bold statement and so it was on Monday (5 October) as it announced “the beginning of a new era” with Frasers Group Luxury. 

This new division of the business is a “luxury ecosystem spanning the UK and US with ambitions to grow globally”.

It’s a perhaps unsurprising move given how recent years have seen it ramping up its presence in luxury retail and brands. 

It has evolved from being a business that was best known for Sports Direct but that also had a luxury arm to one that now owns Harvey Nichols, Flannels, The Webster, plus very big stakes in Mulberry and Hugo Boss, and a small stake in Burberry.

The company said its new Frasers Group Luxury unit “combines a portfolio of distinctive luxury businesses, digital capabilities, and investments with long-standing strategic brand partners at its core. Built on more than a decade of experience in the sector, and underpinned by the trust from strategic brand partners, Frasers Group Luxury represents the next phase of the group’s luxury strategy. It combines the expertise and reach of Frasers Group with the commercial discipline that underpins the wider business”.

It brings together Flannels, Harvey Nichols and The Webster, “creating a platform for future global growth”. 

Flannels was previously part of the group’s Premium Lifestyle division and has been part of the group since 2017. It now has more than 80 stores across the UK focusing on what it calls “new luxury”.

The group bought a majority stake in The Webster a year ago as an entry point into the US luxury market. Since this move, which upped its international profile, it said it has continued to invest in the business’s store estate in Bal Harbour, South Beach and New York. The Bal Harbour Shops West expansion will be unveiled next month.

Harvey Nichols is the most recent and highest-profile purchase and underlines the extent to which the group has powered into the luxury segment in recent years.

Its plans appear to include major investment in the London flagship, as well as in Manchester and Edinburgh, although reports have suggested the Bristol and Leeds branches will be converted to Flannels, although there’s already a major branch of Flannels in Leeds.

The company’s luxury drive hasn’t been trouble-free. The Matches buy in late 2023 saw Matches shut down relatively soon after, although it has since been acquired by Hulcan ahead of a relaunch — Frasers has also invested in Hulcan.

But it’s clear that the company is now a major player at the high end and Frasers said its “portfolio spans different expressions of luxury retail, alongside strategic investments in the wider luxury landscape, including Mulberry, Burberry, Hugo Boss and Hulcan’s Mile. Frasers Group Luxury is designed to support brand partners at every stage of their growth — unlocking opportunities, reaching new audiences, entering new markets and creating lasting long-term value”.

Group CEO Michael Murray said of all this: “Luxury has been a core pillar of Frasers Group for more than a decade, starting with Flannels and growing into a profitable £1 billion+ luxury ecosystem in just 10 years. With over 100 stores across the UK and US, we’ve built the expertise, scale, and brand relationships to support our next phase of growth. Our ambition is clear: to continue scaling Frasers Group Luxury globally through organic expansion, acquisitions, and strategic investments, creating long-term value for our brand partners, customers, and the group.”

And Harvey Nichols CEO Julia Goddard added: “Frasers Group provides Harvey Nichols with the expertise, support, and pace to build on our heritage and shape our next chapter. Its understanding of luxury, combined with a strong operational and commercial approach, gives us the confidence to invest, evolve and build for the long term.”