What: Frasers invests in its electrical supplies.

Why it is important: While this is not the first time that a department store company purchases a supplier, the move surprised analysts.

Frasers Group, known for its investments in fashion businesses, has acquired a 'strategic stake' in electricals retailer AO World for GBP 75 million. This move marks a shift from Frasers Group's recent focus on fashion-related categories.

The investment follows two years of discussions about a potential strategic partnership. Frasers Group's CEO, Michael Murray, expressed optimism about the partnership, stating that AO's expertise in electricals and two-man delivery will help drive growth in Frasers Group's equipment and homeware ranges. AO's CEO, John Roberts, also welcomed the partnership, citing the potential for strategic opportunities.

Frasers diversifies in electricals retailer AO World