Frasers Group PLC (LSE:FRAS) saw its shares drop more than 2% after investors scratched their heads on its decision to buy the Frenchgate shopping centre in Doncaster.
Through the purchase, the retail group plans to triple the size of its Sports Direct shop to more than 35,000 square feet and open stores for its other brands including USC, Game and Evans Cycles.
Chief executive Michael Murray said: "The acquisition of Frenchgate Shopping Centre in Doncaster further demonstrates the group’s commitment to investing into brick-and-mortar.
“Acquiring property in key trading locations to unlock new opportunities for our retail and leisure businesses, such as Sports Direct, Everlast Gyms, Frasers and Flannels, is a key priority."
Last week, reports revealed the acquisition-hungry firm was setting its sights on the Princesshay shopping centre in Exeter.
Frasers is looking to purchase both 50% stakes owned by US asset manager Nuveen and the Crown Estate and is expected to invest £80 million to gain full control.
Its decision to pursue shopping centres highlights its commitment to in-store trading, with the debate still continuing on whether e-commerce rivals are best positioned to dominate retail.