Saudi Sovereign Wealth Fund acquires 40% stake in Selfridges, sparking hopes of revival
Shoppers at Selfridges on Oxford Street may have been drawn to Telfar’s lively pop-up last Monday, but behind the scenes, an important deal was being finalised.
Saudi Arabia’s Public Investment Fund (PIF) has announced the acquisition of a 40% stake in Selfridges Group, providing a fresh injection of hope for the future of the iconic retailer.
The deal follows concerns over the ownership of Selfridges after Austrian group Signa, which holds the fund, filed for bankruptcy last November. The remaining 60 per cent of the group remains with Thailand’s Central Group, which, alongside Signa, bought Selfridges from the Weston family in 2021 for £4 billion.
The new Saudi partnership aims to accelerate the department store’s growth while remaining true to Selfridges’ heritage. Central and PIF said their partnership would “unlock further value” for the retailer, which is known for showcasing art, luxury offerings, and the history of its Oxford Street flagship.
Founded in 1909 by Harry Gordon Selfridge, the department store has faced challenges recently, including a £1.7 billion debt and the departure of its CEO, Andrew Keith, this year. However, industry analysts believe that PIF investments will bring financial stability. Marketing experts, including Richard Hyman, warn that the store should focus on strong leadership and “proper marketing” rather than distractions such as luxury hotel plans or overseas expansion.
The PIF, which controls assets worth £550 billion, including stakes in Aston Martin, Uber, and Heathrow, is expected to provide a stable financial base for Selfridges. However, critics have raised concerns about Saudi Arabia’s human rights record and the potential use of high-profile investments to improve its global image.
