Mike Ashley’s Frasers Group PLC (LSE:FRAS) cemented its expansion into Australia and New Zealand by buying a stake in fashion marketplace MySale PLC.
The moves comes as retailers face increasingly challenging trading conditions as customers struggle with the cost-of-living crisis.
Frasers, which combines the Sports Direct and House of Fraser brands, said in a filing it bought a 28.7% stake in the Australian marketplace.
Ashley plans to offload end-of-line products at the Australian fashion marketplace through the latest strategic tie-up.
Surplus stock and customer returns have plagued retailers amid weakening consumer confidence and rising inflation.
The latest purchase allows Frasers’ end-of-line group products to be “cleared via an established clearance channel”, the group said in a statement.
Winter lines will be sold at the end of the season, benefiting from counter seasonality in Australia and New Zealand and vice versa.
In 2014, Ashley’s sports retail chain Sports Direct unveiled plans to form an online partnership with OzSale.com.au, part of MySale Group, by opening four flagship stores in Australia and New Zealand where it would host OzSale.com.au outlets instore.
Frasers Group shares dipped 1.04% on early trades. MySale shares gained 20%.