Selfridges bid approach brings price tag in excess of £4bn

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Selfridges, one of the world’s most famous department stores, may be sold for £4bn or more.

The retailer, whose Oxford Street flagship is one of retail’s most iconic businesses, is considering buyer interest after receiving an unsolicited approach.

Selfridges, owned by the Weston retail dynasty that also controls Primark, has brought Credit Suisse on board to advise, according to property news service React, which broke the sale story. The bid interest is likely to draw out other would-be buyers.

A source familiar with the situation confirmed to Retail Week that an approach to buy Selfridges has been made, but said a deal was not a foregone conclusion.

The Westons, well-known for their philanthropic as well as business interests, are likely to consider the extent to which vision and purpose feature on the agenda of any interested parties. Selfridges has put sustainability at the heart of its strategy and the family have a long-established commitment to corporate social responsibility.

Selfridges’ property assets alone are worth £2bn, according to React. Any deal would also involve the department store group’s Brown Thomas and Arnotts stores in Dublin, which are as central to that city’s retail heritage as Selfridges’ Oxford Street store is to London’s.

Buyer interest in Selfridges comes as some question the future relevance of department stores, following the collapse of famous names such as Debenhams and the travails of John Lewis.

However, landmark stores, offering world-class experience as well as a wealth of product and high standards of service, are thought to have a secure future despite the ravages of the Covid pandemic on big cities, which has decimated footfall.

In its most recently reported financial year, Selfridges Group’s holding company SHEL Holdings said the pandemic “had a significant short-term impact on the group’s profitability” but it has “committed support from its ultimate parent company”.