Frasers Group remains focused on its elevation strategy, and says its relationships with leading global brands are stronger than ever at a time when it plans to offer the UK’s “most comprehensive retail media offering”.
The update comes as the omnichannel retail group today reports pre-tax profits of £379.4mn from continuing operations in the year to April 27 2025 (-24.3% on the previous year) on revenues of £4.9bn (-7.4%). It also reported adjusted pre-tax profits of £560.2mn (+2.8%).
Frasers Group chief executive Michael Murray said the business was “fully committed to our elevation strategy”. He added: “Our relationships with the world’s best global brands, including Nike, adidas and HUGO BOSS, are the strongest they have ever been, and our ambitious growth plans are now strengthening and scaling these partnerships even further.”
The retail group, which owns more than 40 multichannel brands from Sports Direct and Game through to House of Fraser and Flannels, says extra costs as a result of last year’s Budget have cost it more than £50mn, although it is working to mitigate that total. The retailer has grown its Frasers Plus credit and loyalty scheme over the year, with membership reaching 1mn after year end. Some 12.2% of UK online sales involved Frasers Plus, which allows shoppers to pay in installments while also collecting loyalty points.
Frasers Group is also focused on international growth and omnichannel customer experience, centred around its Sports Direct business.
Retail media
Frasers Group says, in today’s full-year statement, that it has “aspirations to offer the UK’s most comprehensive retail media offering”. The group announced its move into this growing area after year-end through its new Elevate retail media strategy. The aim is to use its new Sports Direct membership – launched during the year alongside a new Sports Direct app – to “connect brands more effectively” with the Frasers Group audience of more than 30mn people. “We believe this proposition will be crucial in offsetting the ever-increasing digital marketing costs of third parties,” it said.
AI
Looking ahead, the retail group is “actively exploring” the use of artificial intelligence in the business, starting with Frasers Plus. It says in today’s statement: “We have an ambition to be among the first retailers to adopt a comprehensive AI strategy on this scale.” It aims to use it to find new sources of value, optimise costs and improve employee and customer experiences and says more details will come with its December half-year results statement.
Strategic focus
More than half of group revenue (54.7%) comes from its UK sports division, where revenue fell by 7.2%. In this division, flagship brand Sports Direct continued to report sales growth, but that was offset by “planned declines” at Game UK and Studio Retail.
Frasers Group is continuing to invest in its premium lifestyle division, which represents 21.3% of total group revenue. Twelve store openings during the year include a new Flannels in Leeds and a Frasers in Sheffield. At the same time it is focused on ‘right-sizing’ premium businesses including House of Fraser.
Frasers Group’s international business, including its Sports Direct international business and in-year acquisitions Holdsport in South Africa and Namibia and XXL ASA in Scandinavia, accounts for a further 20.5% of sales.
