Department store set for £4bn auction, with international buyers eyeing up prestigious brand
All eyes will be on the historic London retail brand to see who snaps it up.
One region particularly keen to see who takes over the reins of the business – considered the “jewel in the crown” of department stores – will be the Middle East.
Spread across five floors on London’s Oxford Street, the brand’s flagship store has long been a favourite for visitors from the Gulf and wider Middle East, who enjoy its luxury clothing, food hall, lavish interiors and features such as a sunglasses room, kids’ concierge and cinema.
Now the brand is for sale with assets up for grabs including Selfridge’s four stores in the UK – in London, Manchester and Birmingham – along with Brown Thomas and Arnotts in Ireland and De Bijenkorf in the Netherlands.
Some experts even believe a Middle East buyer may be in the mix to take over this prized British asset.
“A Middle East buyer would be a really clever way to boost the consumer base they’ve already got and make it even more successful because they do really drive the sales,” she said.
Although Selfridges declined to comment on the auction or confirm when the sale will go ahead, the starting price is set at £4 billion ($5.53bn), with analysts expecting the winning bid to be much higher amid fierce competition from across the globe.
Parties already touted as potentially interested include Thailand’s Retail Group, HBC, the owner of Saks Fifth Avenue and Hong Kong’s Lane Crawford Joyce Group.
Chinese state-backed businesses and Middle East players are also in the mix, indicating the sale price could quickly escalate.
“There will be a fight for it because its reputation is so huge and it is so prestigious across the world and they are also pushing the sales of the European catalogue as well,” Ms Jupp said.
“It’s just a world-dominating name, so why wouldn’t you want to have it if you’ve got $4 billion sitting in the bank?”
