House of Fraser, now under the ownership of Sports Direct tycoon Mike Ashley, is on the brink of a major makeover that could potentially revolutionize the British retail scene. Ashley’s goal is to transform the department store into the “Harrods of the high street” by launching a series of mini luxury multibrand stores.
Under this new strategy, as many as seven House of Fraser locations will be rebranded as Frasers, focusing on carrying high-end designer brands. The rest of the chain’s 50+ stores will continue to target a more mainstream consumer base. This marks a departure from Ashley’s previous plan of incorporating large-scale concessions from Sports Direct and Flannels, as Flannels already boasts a diverse selection of premium and luxury labels.
Reports from The Guardian suggest that Ashley has already shared his plans with suppliers and is ready to pour millions of pounds into this venture. The Glasgow flagship store, purchased for £95 million, is slated to be the first to undergo this transformation, with potential plans to extend the designer chain concept to the Belfast store.
Insiders have hinted that the initial phase may include rebranding three or four stores, with an official announcement looming in the near future. Ashley draws inspiration from the success of the Flannels brand and envisions filling a gap in the market for upscale retail experiences.
Despite the financial strain felt by brands during House of Fraser’s administration process, Ashley faces the challenge of rebuilding trust with these labels. As speculation mounts about the viability of the department store and the looming threat of closures, high-end brands have started to distance themselves from House of Fraser, impacting the appeal of certain locations.
Nevertheless, Mike Ashley remains resolute in his vision for House of Fraser. By enhancing the luxury offerings within the chain, he aims to make a bold statement in the British retail landscape. The success of the venture hinges on Ashley’s ability to position House of Fraser as a go-to destination for luxury fashion and designer labels on the high street.
(Source: [The Guardian](https://www.theguardian.com/business/2020/nov/21/mike-ashley-plans-harrods-of-the-high-street-with-house-of-fraser-stores))
(Source: [BBC News](https://www.bbc.com/news/business-55187643))
