Shoppers at Selfridges on Oxford Street may have been drawn to the vibrant Telfar pop-up last Monday, but behind the scenes, a significant deal was being finalised.
Saudi Arabia’s Public Investment Fund (PIF) announced the acquisition of a 40% stake in Selfridges Group, providing a fresh injection of hope for the iconic retailer’s future.
This deal follows concerns over the ownership of Selfridges after Austrian property group Signa, which held the stake, filed for bankruptcy last November. The remaining 60% of the group remains with Thailand’s Central Group, which, alongside Signa, had purchased Selfridges from the Weston family in 2021 for £4 billion.
The new Saudi partnership aims to accelerate the growth of the department store while staying true to Selfridges’ legacy. Central and PIF stated that their collaboration would “unlock further value” for the retailer, known for its creative displays, luxury offerings, and historic Oxford Street flagship.
Founded in 1909 by Harry Gordon Selfridge, the department store has faced challenges recently, including a £1.7 billion debt and the departure of its CEO, Andrew Keith, this year. However, industry analysts believe the PIF investment will bring financial stability. Retail experts, including Richard Hyman, caution that the store must focus on strong leadership and “proper retailing” rather than distractions like plans for a luxury hotel or overseas expansion.
PIF, which controls assets worth £550 billion, including stakes in Aston Martin, Uber, and Heathrow, is expected to provide a stable financial foundation for Selfridges. However, critics have raised concerns about Saudi Arabia’s human rights record and the potential use of high-profile investments to improve its global image.