British group Frasers has acquired a 28.7% stake in online fashion market MySale.
In a filing with the London Stock Exchange, the company said its investment would create a clearance channel for the stocks.
“This creates an opportunity for a strategic partnership through which the Group’s end-of-line products can be cleared through an established customs clearance channel. This pipeline will be further enhanced by the benefits of counter-seasonality between the European and Australian climates. »
Launched in Australia in 2007, MySale is an online marketplace stocking low-cost products through three main platforms, namely OZSALE.com.au, NZSALE.co.nz and SINGSALE.com.sg.
In a trade update for the six months to December 31, MySale reported a 36% increase in gross merchandise value to $86.7 million from FY22 H1.
The company said this reflected progress in scaling its off-price market platform, which is expected to become the group’s largest sales channel, supported by the higher-margin equities channel. high.
Due to the changing sales mix and market channel growth, total revenue decreased 6% to $59.7 million (A$63.8 million in the first half of the fiscal year 21).
At the time of the announcement, MySale CEO Kalman Polak said the strategy would continue into the future.
“The new management team has continued to evolve our market platform, which is complemented by our own equity channel.
“The Group has worked hard to weather the recent headwinds of lower consumer demand due to the impact of the Omicron variant and supply chain challenges.
“The Group’s inventory increase is of high quality. Despite these challenges, we remain confident and are well placed to capitalize on the long-term opportunity for the Group.”