JEDDAH (The Thursday Times) – The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has made a significant move in the global luxury retail market by acquiring a 40 percent stake in British luxury department store chain Selfridges Group. This acquisition is part of a new strategic partnership with Thailand-based Central Group, which has increased its majority stake in Selfridges to 60 percent.
This partnership brings together two powerful entities, combining the luxury retail expertise of Central Group with the global investment reach of PIF. Central Group, a family-owned conglomerate, confirmed that it will remain the majority stakeholder in both Selfridges Group’s operating and property companies. PIF takes over the minority stake previously held by Austrian property developer Signa Group, further solidifying Selfridges Group’s financial strength and growth prospects.
Although terms of the deal were not disclosed, the move is widely expected to bolster Selfridges Group’s position in the competitive luxury retail market while securing funding for future development projects.
Selfridges Group’s expanding European footprint
The Selfridges Group is renowned for its 18 luxury department stores spread across three countries. This portfolio includes iconic stores such as Selfridges in the UK, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland. Among its most prominent assets are Selfridges Oxford Street in London, one of the world’s most famous shopping destinations, and Selfridges Manchester Exchange Square.
The group continues to draw high-end clientele through its focus on premium retail experiences, and the new partnership with PIF is expected to amplify its presence further across Europe.
Central Group’s vision for Selfridges’ future
Tos Chirathivat, executive chairman and CEO of Central Group, expressed excitement about the new partnership with PIF, stating, “We are glad to welcome PIF as a partner in Selfridges Group. This collaboration will significantly strengthen Selfridges Group’s financial position and lay the foundation for future growth and development.”
Central Group acquired its majority stake in Selfridges in 2022 and has been instrumental in pushing through various innovative projects, such as transforming Selfridges’ Beauty Hall on Oxford Street into the ‘Beauty Destination of the Future’, along with expanding luxury spaces in Brown Thomas in Dublin and De Bijenkorf in Amsterdam.
Chirathivat emphasized that PIF is Central Group’s “partner of choice” in this significant venture, underscoring PIF’s proven global track record of investments and Central’s expertise in luxury retail and brand management. Together, these strengths will enable Selfridges Group to continue thriving in a challenging retail landscape, benefiting all stakeholders involved.
PIF’s global investment strategy aligns with Selfridges purchase
The Public Investment Fund, which has been playing a pivotal role in Saudi Arabia’s Vision 2030 strategy, has made this investment as part of its ongoing efforts to diversify its portfolio across key global sectors. The partnership with Central Group and the acquisition of a stake in Selfridges aligns with PIF’s objective of investing in high-potential international markets, particularly in luxury retail.
Turqi Al-Nowaiser, deputy governor and head of international investments at PIF, stated, “We are pleased to be partnering with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores. This transaction will allow Selfridges to build on its status as a premier retail destination.”
PIF’s investment in Selfridges is expected to accelerate the brand’s growth and help cement its position as a leading force in European luxury retail. The partnership, Al-Nowaiser said, is “built on a shared vision” of unlocking further value in the Selfridges Group through strategic investments and operational expertise.
A shared vision for the future of Selfridges
Both PIF and Central Group have reiterated that their new partnership is based on a strong foundation of investment expertise, industry knowledge, and a shared long-term vision. Together, they aim to unlock Selfridges Group’s full potential, enhancing its luxury retail offerings and expanding its reach in the European market.
The strategic partnership will enable Selfridges to embark on new developments and innovations, such as enhancing customer experiences, optimizing retail spaces, and adapting to the evolving needs of luxury consumers. With this collaboration, Selfridges Group is set to maintain its position as a premier retail destination while pursuing new opportunities for growth and expansion.
Central Group’s recent milestones in Selfridges Group
Since becoming the majority shareholder in Selfridges Group in 2022, Central Group has overseen several notable developments aimed at modernizing and expanding the brand’s luxury retail space. These initiatives include the complete makeover of Selfridges’ Beauty Hall on Oxford Street, transforming it into a state-of-the-art shopping experience dubbed the ‘Beauty Destination of the Future’.
Central Group has also expanded and renovated key sections of Brown Thomas in Dublin and the men’s department at De Bijenkorf in Amsterdam, positioning Selfridges Group at the forefront of luxury retail innovation.
In 2023, Selfridges Group achieved sales exceeding £2.8 billion, further solidifying its reputation as one of the most successful luxury retail brands in Europe. The partnership with PIF is expected to provide further financial and strategic support, allowing for continued growth in an ever-evolving retail landscape.
