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Frasers is a misunderstood retailer – so it’s shares are going at a bargain

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Frasers is a misunderstood retailer – so it's shares are going at a bargain

Second is that Frasers remains a misunderstood business. Most people believe its fortunes are entirely dependent on Sports Direct, selling cheap tennis rackets, tracksuits and giant mugs. That is no longer true.

Yes, Sports Direct remains central to Frasers’ proposition but there are plenty of other areas that could become bigger contributors to earnings. It’s feasible to suggest the stock could trade on a richer valuation if Frasers continues to execute its strategy with success. 

Murray is the driving force behind Frasers’ “Elevation Strategy”, which targets more affluent customers and broadens the group’s reach. The company has strengthened partnerships with big brands and rolled out smarter stores and luxury products under the Flannels name.

This builds on earlier initiatives to make money from gaming, gyms, cycling and sofas, and the group now operates in the UK and overseas. This illustrates how a focused, ambitious company can spread its wings and become a bigger beast.

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Frasers recently laid out plans to become a bigger player in the buy now, pay later market, both for its own shops and third-party retailers. Next makes a chunk of its profit from finance and that has clearly given Frasers a lightbulb moment.

Frasers’ service makes it easier for individuals to purchase products from brands including Nike, Adidas, Chanel, Gucci and Prada without upfront payment. Anyone who doesn’t pay off the full amount within three months is charged a 29.9pc annual interest rate on the outstanding balance. Frasers says customers using this service spent £500 on average, with an approximate 5pc default rate.

Buy now, pay later is a competitive market and third-party providers like Klarna and PayPal are already established partners for retailers around the world. Frasers might still have a chance to muscle in on the market as its service to retailers is free, unlike some of the big-name rivals. It recently signed up e-commerce group THG as its first external client in this area.

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CryptoCurrency

Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week

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Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week


According to data from CryptoQuant, cbBTC circulation supply has outpaced long-established players seven days after launch. 



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Bitcoin options markets reduce risk hedges — Are new range highs in sight?

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Bitcoin options markets reduce risk hedges — Are new range highs in sight?


Bitcoin options market positioning shifted as BTC price shot through the $60,000 to $63,000 level. 



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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 

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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 


Ether price could be on track for another correction into a triple-bottom, marking the beginning of a big rally into 2025.



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Blockdaemon mulls 2026 IPO: Report

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Blockdaemon mulls 2026 IPO: Report


Other Web3 infrastructure platforms, such as Circle, are also mulling IPOs.



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SEC asks court for four months to produce documents for Coinbase

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SEC asks court for four months to produce documents for Coinbase


The financial regulator requested an extension until February 2025 to review “at least 133,582 unique documents” as part of discovery motions with Coinbase.



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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec

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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec


Ethereum is still home to the most active crypto developers and is the most attractive chain to build applications on top of for big companies, argues Bitwise’s Matt Hougan.



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