Former Selfridges chief executive Peter Williams ruminates on the iconic department store’s potential sale and makes a special plea to its owner the Weston family. 

Many people, including me, were surprised and even taken aback by the revelation in July that the Weston family were thinking of possibly offloading Selfridges because they are not known as sellers. 

The family still owns the majority of the businesses they have bought over many decades. 

Why sell now when department stores are having such a hard time trading, especially where they rely on overseas tourists? It seems an odd time to do so.

In 2003, I was chief executive of Selfridges when it was bought by the Weston family. 

In a highly competitive bid situation, the Westons outbid the then management team, led by me with backing from Blackstone, and a Tom Hunter/Philip Green consortium. 

While the management team were obviously disappointed with the outcome, the Weston family have undoubtedly been good owners of the business. 

“There is no doubting that the shop deserves the accolade of ‘best department store in the world’ that it has won on several occasions”

They continued with the strategy, started under the aegis of the chief executives who preceded me (Tim Daniels and Vittorio Radice), of turning the business not only into the destination for the latest in fashion and beauty, with incredible choice, but a place to meet, hang out and be exposed to new ideas and brands. 

While I might be marginally critical about the Oxford Street store demoting young fashion to the third floor – thereby giving insufficient emphasis to the next generation of customers – and the lack of any development in more than 15 years of the area previously occupied by Selfridges Hotel, there is no doubting that the shop deserves the accolade of ‘best department store in the world’ that it has won on several occasions.

However, the media has reported that the Selfridges Group is being sold, which isn’t just the four eponymous stores. 

The group comprises 25 stores across five brands (Selfridges, Holt Renfrew, Brown Thomas, Arnotts and de Bijenkorf) and four countries (UK, Canada, Ireland and the Netherlands). 

Therein lies an issue: how do you replicate the energy and scale created in the big flagship stores in London, Toronto, Dublin and Amsterdam in comparatively small stores in places such as Calgary, Galway and Maastricht?

Department stores have continued to evolve. From their creation more than 100 years ago, when they were one of the first shops where a woman was allowed to browse on her own and buy ready-made clothes, department stores became the editors or curators of product and brands. 

“The arrival of the internet has put department stores under huge pressure. The consumer can now easily undertake her or his own selection from an infinite choice online”

Private-label fashion, developed by many department stores in order to improve gross margin, became seen by consumers as bland by comparison with the more genuine fashion brands, as evidenced by the demise of Debenhams.

However, the arrival of the internet has put department stores under huge pressure as they have all struggled with their digital offerings. 

The consumer can now easily undertake her or his own selection from an infinite choice online. In the case of the Selfridges Group, whose stores predominantly sell more premium third-party brands, the business has new competition from digital entrants, such as Net-a-Porter, Mytheresa and Matchesfashion, and the brands themselves, which are putting much more effort into using both mobile and the web to sell directly to the consumer.

Of course, nothing may change at Selfridges. People make approaches to companies all the time, especially when – as in this case – there are very desirable trophy assets. 

But at what price given the trading challenges both in the short term, because of the pandemic, and in the longer term, because of structural changes in the retail industry? 

One potential bidder could be Central Retail from Thailand, which in Europe already owns the Rinascente stores in Italy and Illum in Copenhagen, and has a majority stake in three premium department stores in Germany, including the historic KaDeWe in Berlin.

In any event, whoever the buyer is – if there is one – here is a plea to the Westons. 

For the thousands of people who worked at Selfridges over the years, for whom it was their best job ever. 

And for the millions of customers who visit Oxford Street, for whom it is their favourite store.

Please don’t sell it to anyone who is likely to ruin it. 

  • Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday