The owner of Selfridges sees a significant rise in both losses and sales.
- Pre-tax losses nearly doubled to £340.3 million by February 2024.
- Sales climbed sharply, increasing 95% to £1.6 billion.
- Increased foot traffic linked to higher sales figures.
- Ownership restructuring leads to Central Group owning 60% and Saudi’s Public Investment Fund 40%.
The financial landscape for the owner of Selfridges experienced a dramatic shift as pre-tax losses almost doubled to £340.3 million in the fiscal year ending February 2024, compared to £126.2 million the previous year. This significant increase in losses contrasts with a considerable surge in full-year sales, which soared by 95% to £1.6 billion. This unexpected dichotomy reflects a complex financial scenario faced by the business.
The surge in sales was attributed to a rise in customer footfall across their retail locations. Despite the promising growth in revenue, the substantial pre-tax losses indicate underlying financial challenges that the company must address. These financial details were disclosed in recent filings by Cambridge Retail Group Holding, jointly owned by Thailand’s Central Group and Saudi Arabia’s Public Investment Fund.
Apart from the iconic Selfridges stores, the parent company manages renowned department stores like Brown Thomas and Arnotts in Ireland and De Bijenkorf in the Netherlands. Collectively, these enterprises employed 7,300 people as of February 2024, a slight decrease from 7,800 the previous year, highlighting some operational adjustments possibly due to financial pressures.
A significant development during this period was when Signa Group, a co-owner of Selfridges, sought restructuring consultants to raise necessary funding. This led to a strategic shift in November 2023, where Central Group assumed control of Signa Group’s stake, culminating in a partnership with the Saudi Public Investment Fund eleven months later. This realignment of ownership stakes resulted in Central Group holding a 60% share and the Public Investment Fund holding 40%.
This partnership reshapes the investment landscape for Selfridges, aligning with broader economic interests between Thailand and Saudi Arabia. Such strategic decisions indicate attempts to stabilize the ownership structure in the face of financial instability.
The owner of Selfridges faces a challenging financial situation despite strong revenue growth, necessitating strategic changes in ownership and financial structuring.
