Frasers Group has reaffirmed its commitment to property as a core element of its growth strategy, highlighting real estate investment as a “key focus” amid shifting retail dynamics.
The group’s property division generated £13.9 million in revenue for the 2025 financial year, marking a 19.1% year-on-year increase. This accounted for 1.8% of total group revenue and reflects a strategy built around targeted acquisitions and asset enhancement.
The uplift was underpinned by the annualisation of previous acquisitions, including Castleford’s shopping centres, alongside a string of high-profile deals completed during the year. These included Frenchgate in Doncaster, Princesshay in Exeter, Fremlin Walk in Maidstone, and a portfolio of Affinity outlets.
Trading profit from the property arm rose by £5 million, driven by higher rental income. However, gains were partly offset by a £5.8 million increase in operating costs.
In contrast, Frasers’ core retail division reported a 7.4% decline in revenue compared to the previous year. Although Sports Direct continued to deliver sales growth and the group acquired Twinsport during the period, these gains were outweighed by planned revenue reductions across Game UK, Studio Retail, and a number of brands previously acquired from JD Sports and SportMaster in Denmark.
The luxury market also remained subdued, though the group noted some encouraging early signs of recovery.
Michael Murray, Chief Executive of Frasers Group, said:
“I’m pleased with our performance this year, despite the headwinds caused by last year’s Budget. We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities. We continued our strategy of confidently investing for the future, unlocking multiple opportunities for sustainable medium- to long-term growth.”
He added:
“We accelerated our international expansion, announcing partnerships in Australia, Asia and EMEA, to further build Sports Direct into a truly worldwide proposition. 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.”
“We captured over £125 million of synergies through strategic acquisition integrations and cost-savings, and continued to invest in real estate opportunities that deliver great value for the group.”
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