Central Group, the Thailand-based conglomerate, is excited and optimistic about its recent joint venture purchase of Selfridges, a luxury department store that has faced challenges in previous years. This acquisition is set to nearly double Central Group’s European footprint, which CEO Tos Chirathivat believes is a critical market for the company. Chirathivat expressed in an interview with Nikkei Asia that Europe is the birthplace of luxury brands and a popular destination for tourists worldwide.
Central Group, along with its joint venture partner Signa Group from Austria, acquired the UK and European business of Selfridges Group for approximately £4 billion. The deal includes 18 stores, excluding operations in Canada, and will expand Central Group’s European department store portfolio to a total of 39 locations. Despite concerns surrounding the future of department stores, Chirathivat remains optimistic about their prospects. He firmly believes that department stores are indispensable for various lifestyle needs, including socializing, shopping, and dining. Central Group is also open to exploring opportunities that align with their strategy and vision.
Chirathivat sees the acquisition of the European Selfridges Group as advantageous for Central Group’s Asian operations. With the increasing demand for luxury brands in Asia, European department stores with strong connections to top brands could benefit the wider Central Group. Additionally, Central Group aims to leverage Selfridges’ online strength and reputation for excellent customer service to enhance its own omnichannel strategy, which is an area the company is heavily investing in.
As part of the acquisition, Central Group and Signa Group have made a commitment to invest in Selfridges’ stores in the UK, Ireland, and the Netherlands. They anticipate that their combined department store sales will reach €7 billion by 2024, representing a 40% increase compared to 2019 figures. This partnership demonstrates the dedication of Central Group and Signa Group to support and revitalize the Selfridges brand.
Overall, Central Group’s acquisition of Selfridges presents a significant expansion opportunity for the company in Europe. Despite the challenges faced by department stores in the retail industry, Central Group remains confident in their potential and the benefits they can bring to their business. Through leveraging Selfridges’ strong online presence, European brand relationships, and investments in store enhancements, Central Group aims to strengthen its position in both the Asian and European markets.
Useful links:
1. Selfridges Official Website
2. Central Group Official Website
