UK-based Frasers Group has acquired a 28.7% holding in online fashion marketplace, MySale.
In a filing with the London Stock Exchange, the company said its investment would create a clearance channel for inventory.
“This creates an opportunity for a strategic partnership whereby end of line Group products can be cleared via an established 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 off-price goods through three core platforms including OZSALE.com.au, NZSALE.co.nz and SINGSALE.com.sg.
In a trading update for the six months to December 31, MySale reported a 36% increase in gross merchandise value to $86.7 million compared to FY22 H1.
The company said this reflected progress in scaling its off-price marketplace platform, which is expected to become the Group's largest sales channel, underpinned by the higher margin own-stock channel.
As a result of the changing sales mix and growth of the marketplace channel total revenues declined by 6% to $59.7m (A$63.8m H1 FY21).
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 scale our marketplace platform, which is complemented by our own-stock channel.
"The Group has worked hard to navigate recent headwinds in lower consumer demand driven by the impact of the Omicron variant and supply chain challenges.
"The Group's increased inventory position is of a of high quality. Notwithstanding these challenges, we remain confident and are well positioned to capitalise on the long-term opportunity for the Group."