Reports suggesting that Frasers Group (FG) is eyeing Yoox Net-A-Porter (YNAP) are appearing everywhere, as is the suggestion that it is in talks with Goldman Sachs about taking YNAP off Richemont’s hands.
There is a certain logic to a proposed deal, with Frasers repeatedly talking up its desire to develop further into the luxury sector and Richemont looking to offload the underperforming YNAP business for a fraction of what it was once worth. But, and it is a very big but, questions have to be asked around how Frasers could possibly hope to profit from YNAP without committing to considerable onward investment.
Watch this space. Meanwhile, FG has been focusing on acquiring town centre shopping malls, which have been bearing the brunt of the retail turndown with low occupation levels. FG certainly has no shortage of retail brands to accommodate and could, conceivably, revive footfall by breathing new life into down-at-heel shopping centres. It is being suggested that the combination of its Sports Direct stores with its Everlast Gyms could be a winner in this respect and attract other retailers to its locations. A bit of a win-win, all told.
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