CityBeat: The next step for Selfridges
Glynn Davis looks at the prospects for Selfridges under its new chief executive
February 28 2003
There is no doubt that Vittorio Radice made a world of difference when he took over at the head of Selfridges. There was much initial criticism when he laid down his somewhat outlandish – and expensive – plans for the development of the flagship store and the intention to expand into the provinces.
But he certainly delivered in the end and many critics turned into fans – and no doubt shoppers at the group’s stores. Well, now he’s gone to Marks & Spencer to head up its home division where does that leave Selfridges?
If retailer-turned-corporate-stake-builder Baugur is anything to go by, then it leaves Selfridges in a very bad position. The Icelandic operator has traditionally targeted problem retailers since they, not surprisingly, have the lowest share prices. But how come Selfridges finds itself in the same company as Arcadia (now recovered), Iceland, House of Fraser and Mothercare?
Certainly as far as the City is concerned, the company seems to have had its run because its shares currently trade close to their 12-month low of 220p – compared with a high of nearly 400p before Christmas.
Yes, Radice is going and the new broom, former FD Peter Williams, is unproven and the plan to build extra square footage at the Oxford Street store has also had to be scaled back. On a more positive note the group has various new stores in the pipeline, it may also play a part in the impending department store consolidation and more importantly shoppers still love walking out of its stores with bulging canary yellow carrier bags.
So it looks like a case of letting the shoppers decide – and then maybe they will drive a few more buyers to the company’s shares. If only it were that simple.
Glynn Davis was previously a fund manager in the City, and has since become a business journalist specialising in the retail sector. He regularly contributes to national newspapers and specialist trade publications. email Glynn@busicomm.fsnet.co.uk
