House of Fraser, under the leadership of Mike Ashley, is undergoing a major transformation with plans to convert 31 of its stores into upscale Frasers locations. After investing significant amounts of money into rebranding the retailer, Ashley is now pushing for a three-year rent holiday to further support his vision.
In the past, Ashley negotiated one-year rent-free agreements with landlords, but now he is looking to completely revamp the stores to target a more luxurious clientele. The new Frasers stores will cater specifically to luxury shoppers, moving away from House of Fraser’s previous focus on premium brands.
This ambitious project is estimated to span over five years, with the first five store conversions slated for 2020. Michael Murray, an executive at Sports Direct who is overseeing the transformation, emphasizes the growing demand for upscale shopping experiences in regional markets that Frasers intends to meet.
Despite potential hesitance from landlords to offer rent-free periods, Ashley is committed to the future of physical retail, recognizing the limitations of e-commerce. He suggests that significant store renovations and rent structures tied to store performance could prove beneficial for both parties involved.
With a proven track record of success with luxury Flannels stores, Ashley is confident in his ability to elevate House of Fraser into a premier shopping destination. While not every existing House of Fraser location may be suitable for the Frasers rebrand, the company is dedicated to establishing a strong presence in the luxury retail sector.
These strategic decisions underscore Ashley’s dedication to rejuvenating House of Fraser and solidifying its position in the competitive retail market. As the transformation progresses, it will be interesting to observe how consumers and landlords respond to the luxury-focused Frasers concept.
To learn more about House of Fraser’s rebranding efforts, click here.
For further insights on luxury retail trends, visit this article.
