Frasers Group, previously Sports Direct, has bought a 12.5% stake in luxury leather goods brand Mulberry in a move that seems to fit with its strategy of moving its own business upmarket.
Frasers Group, which changed its name before Christmas as part of its “multichannel elevation” strategy, and Mulberry Group yesterday both notified the London Stock Exchange of the investment.
At the time of its name change, Michael Murray, head of elevation at Frasers Group, said the change was about “fundamentally changing the perception of the business” and that it demonstrated “the group’s commitment to the transformation of the company as a whole as it embarks on its ambitious elevation strategy and its vision for the future.”
Investment in Mulberry Group seems to fit with that aim. Mulberry’s own strategy is to become a global luxury brand, selling across sales channels both at home and internationally. The brand makes its leather handbags, wallets and other leather goods in the UK, where it was founded in 1971. Today it sells through 122 stores, both directly owned and through franchise partners. Of those, 52 are in the UK, 43 in Asia Pacific and 18 in Europe. Over the last year it has also launched on the Farfetch marketplace for luxury boutiques and and on the Tmall Luxury Pavilion.