The new owners of Selfridges, Central Group and Signa, have expressed their interest in opening more branches of the luxury chain in different cities across the UK. Currently, Selfridges operates four stores in the country, with locations in London, Birmingham, and Manchester. However, the cost of living crisis has led the owners to believe that the economy will experience an upturn once it subsides, making it an ideal time for expansion.
In the late 1990s and early 2000s, high-end department store operators had rapid expansion plans throughout the UK. However, they eventually decided to concentrate on a smaller number of core stores due to various factors. Selfridges, for example, has not opened a new store in the past two decades. Stefano Della Valle, the CEO of Central Group Europe, has stated that their strategy involves having stores not only in capital cities but also in second-tier and smaller cities like St Gallen in Switzerland. While there are no concrete plans for new stores in the UK at the moment, the company remains open to opportunities, similar to their expansion ventures in Germany.
Della Valle strongly believes that Selfridges is the optimal solution for luxury brands seeking distribution, further underlining their interest in establishing a presence in regional cities. The group already operates nine Globus stores in Switzerland and nine Rinascente locations in Italy. However, they face competition from other luxury retailers. Harvey Nichols, for instance, already has stores across the UK and Ireland, while Harrods has its flagship store in London and has been opening H Beauty stores in various locations. Frasers Group, on the other hand, has been investing in its upscale Flannels retail brand and has plans for expansion in cities like Leeds, Cardiff, and Gateshead’s Metrocentre.
These expansions illustrate the increasing demand for high-end fashion and beauty products beyond major cities and among international tourists. Although Selfridges has yet to confirm its plans for additional UK stores, its new owners have ambitious aspirations for the luxury chain’s future growth.
For more information on luxury retail expansion, you can visit these resources:
1. Business of Fashion
2. Retail Gazette
