The chief executive officer of Frasers Group has said that it could close more stores before the end of the year.

Michael Murray, the son-in-law of company owner Mike Ashley, was speaking after the company reported year-end revenue growth of 16 per cent to £5.57 billion. He warned that “the department store globally is broken,” and said that its department store portfolio was “continually under review” due to some outlets being “still too big”.

Since the former Sports Direct International bought House of Fraser out of administration in 2018, Ashley’s empire has reduced the department store’s total numbers from 59 to 31 including entirely moving out of London.

Murray explained that department stores historically have typically been 150,000 sq ft or larger, but that this footprint is “too big”. He said that the group is now targeting stores of around 50,000 sq ft or smaller. He said: “We have to find solutions for the excess space.”

It is not just Frasers which is reducing its department store commitments. John Lewis has shuttered over a dozen stores since 2020, while Debenhams has gone online-only following its entry to administration in 2019. Fenwick meanwhile will shutter its iconic Bond Street flagship store in 2024 after 130 years.

Elsewhere, Murray attributed the group’s growth to its aggressive acquisition strategy and its investment in building minority stakes in brands like Hugo Boss and Asos – in which Frasers on Thursday increased its stake by two points to 15 per cent . He said that the group will continue to develop its portfolio: “There’s going to be opportunities and we are well placed to capitalise on them. We have a strong industry leading platform for helping these businesses and taking benefits for our business.”

Along with Asos, Frasers this week increased its stake in Boohoo from 5 per cent to 6.7 per cent and N Brown from 18 per cent to 19 per cent.

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