Leading luxury department store Selfridges may sell off its web operations as part of a potential sale of the entire company. Sources familiar with the matter have discussed the possibility of spinning off the e-commerce division from Selfridges’ valuable property holdings. The anticipated sale price for the company as a whole is estimated to be around £4 billion, pending a decision from the Weston family, who control Selfridges.
While it is uncertain if the webstore spin-off is still being considered, similar strategies have been adopted by other retailers. For example, Saks Fifth Avenue separated its online operations from its physical stores with a significant investment from Insight Partners. In this arrangement, Saks still maintains control over marketing, merchandising, and intellectual property related to its e-commerce business. If Selfridges decides to sell its webstore, a similar approach may be taken to ensure consistency and control over these aspects.
In today’s retail landscape, a strong e-commerce presence is crucial. The COVID-19 pandemic has highlighted the importance of online retail, pushing retailers to adapt and meet changing consumer demands. Within the UK department store sector, Debenhams has shifted to an online-only business, and John Lewis is aiming to make its web operations even larger than its physical stores. Retailers must embrace the digital realm to remain competitive.
Useful links:
1. Forbes: Could We See More Department Stores Transition to Online-Only?
2. BBC: Selfridges Says ‘No’ to Webstore Spin-Off at Present
