In a lavish move that’s sure to stir up the luxury retail landscape, Saudi Arabia‘s Public Investment Fund (worth $925 billion) has secured a minority stake in Selfridges, the UK’s crown jewel of department stores. This 40% stake covers both the property and operating businesses of the iconic department store, aligning them with the current co-owner, Central Group. The Thai retail conglomerate remains the majority owner with a 60% stake. Together, they’re infusing fresh capital into Selfridges, aiming to elevate the store’s legendary status and reinforce its financial might.
Since its founding in 1908 by retail visionary Harry Gordon Selfridge, this high-end haven has enchanted shoppers on London’s Oxford Street. It stands proudly as the UK’s second-largest department store, just a step behind Harrods. For over 14 years, Harrods has been under the guardianship of Saudi Arabia’s Gulf rivals, Qatar, through their Qatar Investment Authority worth ($475 billion). Known for its unparalleled elegance, Harrods offers a world of indulgence, from rare wines and exquisite art to cutting-edge fashion.
With PIF’s strategic insight and Central Group’s retail mastery, Selfridges Group is set to chart a bold new course. This partnership not only promises to expand the group’s influence across Europe’s luxury market, where it already shines with 18 stores, including De Bijenkorf in the Netherlands and Brown Thomas and Arnotts in Ireland, but also to bring a fresh perspective and innovative strategies to the brand. As a beacon of modern luxury, Selfridges is well-positioned to captivate a new era of global shoppers.
This move further underscores why London-based consultancy Brand Finance has named Saudi Arabia’s sovereign wealth fund, led by Crown Prince Mohammed bin Salman, as the world’s most valuable sovereign wealth fund brand.
