Taking over a business is always challenging, but when your predecessor is as vocal and successful as Mike Ashley, the pressure mounts. One year into his tenure as CEO of Frasers Group, Michael Murray is determined to reshape the company according to his own vision, despite occasional skepticism from his father-in-law, Ashley.
Murray, now leading the group, which includes Flannels, has his sights set on “new luxury, aspirational” customers. With 60 Flannels shops catering to high-end fashion, Murray’s strategy emphasizes exclusivity and designer appeal. The premium stores feature sports tops for £600, trainers for £400, and hoodies for £300—a stark contrast to the value-driven Sports Direct, just across the street.
Mike Ashley, founder of Sports Direct, has grown his retail empire significantly, rebranding it as Frasers Group in 2019 to encompass multiple brands, including Jack Wills and House of Fraser. Despite his continued role as the majority shareholder and hands-on business operator—earning him the nickname “The Mechanic” for his focus on logistics—Ashley is baffled by the Flannels concept. He finds the idea of customers paying such high prices for fashion “bonkers,” but, as Murray points out, Ashley is pragmatic: “He understands that he doesn’t understand,” appreciating the results driven by Flannels’ success.
While the Frasers Group’s premium lifestyle division, led by Flannels, saw significant growth, generating £530 million in revenue last year, the more traditional sports retail arm still dominates in volume, though it’s not growing as fast. For Murray, this divergence reflects his vision of transforming Frasers into Europe’s most aspirational retailer. Despite the global cost of living crisis, Flannels has thrived, especially among its target audience—18 to 30-year-olds who prioritize high-end brands, driven by social media culture and disposable income.
Murray acknowledges that Flannels is unlikely to achieve the scale of Sports Direct but remains committed to elevating Frasers Group to new heights in luxury retail. As he continues to steer the company away from its discount roots, the question remains whether this bold shift will cement his legacy as a transformative leader.
