Sports Direct owner confident on high street revival but plans remain sketchy

The company also plans to invest “in excess” of £100m on upgrading its digital platforms and pushing its designer label business Flannels.

Mike Ashley’s Frasers Group has published its delayed results – the second time in two years sales figures have failed to arrive on time – and painted a bullish picture for the future of the high street at a time when others are fleeing.

Frasers, which includes House of Fraser, Sports Direct and Evans, among others, said the emptying of the high street and shopping centres could prove lucrative for the firm, with more space available to expand.

The company also plans to invest “in excess” of £100m (€110m) on upgrading its digital platforms and pushing its designer label business Flannels.

Bosses are keen to push their “elevation” strategy to improve stores and win over more customers with premium products – and away from previous criticisms of crowded stores and neverending discount events.

Chief executive and owner Mike Ashley (Kirsty O’Connor/PA)

This includes building strong relationships with Adidas and Nike, who spent much of the past decade shifting away from Mr Ashley and his preferred style of aggressive business.

They also called for the Government to increase corporation tax in the UK by 1% to fund the NHS, adding “on the proviso the full 1% goes directly to the NHS”.

During the lockdown Mr Ashley faced criticism after it was revealed by the PA news agency that he intended to open Sports Direct stores, claiming they were “essential” retailers.

The following day he reversed the decision following criticism from the Government and issued an apology. PA also found Sports Direct hiked prices on at-home gym equipment within hours of the lockdown’s implementation.

Since then, Frasers said in its statement that it has supported front-line services including a sales day with a 50% discount for all NHS staff in June.

Shoppers at a retail park in Belfast queue to enter Sports Direct after the store reopened (Liam McBurney/PA)

The company said: “It was an overwhelming success with gross sales of approximately £50m before discount and approx. £25m after discount.”

Chairman David Daly said: “The Covid-19 impact has created uncertainty and we consider that it will be some time before the country and indeed the world recovers.

“However, Frasers Group itself has always taken a long-term approach to its strategy and this has helped us, and will continue to help us, through these unprecedented times. We believe our business is strong as is our balance sheet.

“We will continue with the elevation strategy and the expansion of the new store format supported by our talented and loyal staff and we consider we are well placed for the future.”

Mr Daly did not address the shares he bought and subsequently sold in Frasers during a period where insiders are banned from trading ahead of results. “An error” has previously been cited.