Selfridges’ £4B gamble as Thai owner sets sights on “World’s best store”
The family-owned Thai conglomerate Central Group, which bought Selfridges and other European luxury department stores in 2021 for £4 billion, admits it may have overpaid for the portfolio.
The purchase from the billionaire Weston family marked a significant milestone, making it only the fourth time the Oxford Street landmark changed hands since its founding in 1909 by Harry Gordon Selfridge.
Tos Chirathivat, co-owner of Selfridges and CEO of Central Group, acknowledged in his first interview since the acquisition that the price tag was steep, particularly in the current economic climate. Speaking to the Financial Times, he reflected: “You would always aim for the lowest possible price when buying something… is £4 billion high? Yes, it’s high, especially in this environment.”
Chirathivat added that while the valuation might feel excessive today, it could look different in a decade. Despite challenges, Central remains committed to revitalising Selfridges, focusing on enhancing its flagship Oxford Street store with new products, services, and luxury brands.
“The grand plan for Selfridges is to become the best store in the world. Right now, it’s probably in the top five,” he said.
Central Group, which also owns Brown Thomas and Arnotts in Ireland and De Bijenkorf in the Netherlands, has had a turbulent journey since the acquisition. Complications arose when co-investor Signa Holding, owned by real estate mogul René Benko, faced financial collapse in 2023, leaving investors with billions in losses. Italian prosecutors recently issued an arrest warrant for Benko over alleged improprieties.
To stabilise operations, Central partnered with Saudi Arabia’s Public Investment Fund (PIF), which now holds a 40 per cent stake in the Selfridges Group. Chirathivat clarified that while their partnership with Signa had no issues initially, concerns about its mounting debt emerged before its collapse. “We’ve spent the last 18 months trying to clean up [the mess] because our partner [was] no longer able to continue,” he said.
Despite these setbacks, Selfridges’ transformation is underway under new CEO André Maeder, formerly of KaDeWe. The group is focusing heavily on revamping the six-storey Oxford Street flagship. “We have three good floors… we are working to improve every area,” Chirathivat noted, highlighting plans to bolster the beauty department and luxury brand presence.
Central’s determination stems from a deep-rooted passion for retail. “Department stores have always been in our blood,” said Chirathivat, reminiscing about visiting Selfridges as a child.
Financially, the group has faced challenges. Selfridges’ holding company, Cambridge Retail Group, reported a pre-tax loss of £340 million in the 53 weeks to February 2024, compared to a £126 million loss the previous year, largely due to increased finance and administrative costs. However, revenue surged by 95 per cent to £1.6 billion, reflecting strong customer demand.
Chirathivat remains optimistic about Selfridges’ future: “The focus is to rebuild the flagship store… there’s so much potential. We can do a lot more.”
