The financial landscape for Selfridges Group has seen substantial shifts within the past year.
- Pre-tax losses have surged to £340.3 million, marking an increase from the previous year’s £126.2 million.
- Sales nearly doubled to £1.6 billion, aided by increased customer footfall across stores.
- Central Group and Saudi Arabia’s Public Investment Fund now jointly own Selfridges Group.
- The restructuring within the ownership has led to workforce reductions and strategic realignments.
The recent financial filings for Cambridge Retail Group Holding have highlighted a significant increase in pre-tax losses, now standing at £340.3 million for the year ending 3 February 2024. This figure represents a substantial rise from £126.2 million recorded in the previous year. Despite this, sales nearly doubled to £1.6 billion over the same period, which the company attributes to higher footfall across their retail outlets.
The ownership of Selfridges Group, involving Thai conglomerate Central Group and Saudi Arabia’s Public Investment Fund, has been pivotal in this complex financial narrative. The Central Group acquired Signa Group’s stake in November 2023 and later announced a partnership with Saudi Arabia’s fund. Central now controls a 60% stake, while the fund holds the remaining 40%, reshaping the business’s financial and strategic approach.
This restructuring has had a direct impact on the workforce. As of February 2024, the total number of employees across the group’s department stores has decreased to 7,300 from 7,800 the previous year. These stores include not just Selfridges, but also Brown Thomas and Arnotts in Ireland, and De Bijenkorf in the Netherlands.
The changes in ownership and financial strategy have necessitated the involvement of restructuring experts to navigate through the challenging economic climate, aiming to stabilise and potentially pivot the business model to address the financial losses.
The ongoing adjustments within the Selfridges Group exemplify broader trends in the retail industry, where ownership dynamics and market conditions dictate strategic shifts and operational restructuring.
The Selfridges Group faces a challenging future as it navigates financial losses amidst impressive sales growth and ownership restructuring.
