Saudi Arabia’s Public Investment Fund Acquires 40% Stake in Selfridges Group Amid Ownership Concerns

Saudi Arabia’s Public Investment Fund (PIF) has announced its acquisition of a 40% stake in the Selfridges Group, a move that aims to revitalize the iconic retailer and address concerns over its ownership stability. This acquisition comes in the wake of significant turmoil within the company, following Austrian property group Signa’s bankruptcy filing last November. Signa previously held the stake in Selfridges, which it had purchased in a joint deal with Thailand’s Central Group in 2021 for £4 billion.

The remaining 60% of Selfridges is still owned by Central Group, which has now partnered with PIF to further develop the brand while honoring its longstanding legacy. The collaboration is expected to “unlock further value” for the department store, renowned for its creative displays and luxury offerings at its historic flagship location on Oxford Street.

Selfridges, founded in 1909 by Harry Gordon Selfridge, has faced various challenges in recent years, including a staggering £1.7 billion in debt and the departure of its CEO, Andrew Keith, earlier this year. Industry analysts view the investment from PIF as a significant step toward achieving financial stability for the retailer.

Richard Hyman, a retail expert, emphasized that while the investment is promising, Selfridges must prioritize strong leadership and effective retail strategies over distractions such as plans for a luxury hotel or international expansion. “Proper retailing needs to be at the forefront of their strategy,” Hyman stated, urging the company to focus on its core business.

The PIF, which manages assets worth approximately £550 billion, has made high-profile investments in companies such as Aston Martin, Uber, and Heathrow Airport. Its involvement with Selfridges is anticipated to provide the financial backing needed to bolster the department store’s growth prospects.

However, the investment has drawn criticism from various quarters, particularly regarding Saudi Arabia’s human rights record. Critics argue that high-profile investments like these may serve as a means for the kingdom to improve its global image while diverting attention from its controversial domestic policies.

Despite these concerns, the partnership between PIF and Central Group marks a new chapter for Selfridges, offering hope for the department store’s revival in a challenging retail landscape. As both parties work to accelerate the brand’s growth, the retail industry will be closely watching how this collaboration unfolds and whether it can restore Selfridges to its former glory while navigating the complexities of modern consumer expectations.