The takeover secures the future of an iconic British institution and is proof that there is still some life in bricks and mortar but it shouldn’t be misinterpreted as anything more than that.
It does not signal some dramatic and unexpected shock reversal in the fortunes of the high street, nor does it mean that conventional department stores are on the cusp of a remarkable renaissance.
Selfridges is among a handful of enduring retail names that will always pique the interest of trophy asset hunters with deep pockets. Like Harrods, which is owned by Qatar’s royal family; Liberty, which is in the hands of private equity; and Fortnum and Mason, under the control of the British side of the Weston family, Selfridges is in a prime location, in one of the most visited cities in the world, and a tourist destination in its own right.
Central is controlled by Thailand’s billionaire Chirathivat family, and has built up a collection of high-end stores around the world, including Italy’s Rinascente chain and Kaufhaus des Westens in Berlin.
Like its upmarket European equivalents, Selfridges attracts a certain clientele, usually with serious money to spend. Selfridges in London cannot be compared to John Lewis in Basingstoke or House of Fraser in Doncaster.
While Selfridges customers might spend £250 on a pair of jeans, other mere mortals are more likely to trawl through the endless racks in Marks & Spencer for a bargain pair of slacks.
And Selfridges is rarely on the market. Even during a global pandemic it is expected to fetch about £4bn, testament also to the careful stewardship of its Canadian proprietors who restored what was a tired set-up to former glories.
That’s not to say the high street is otherwise heading for total annihilation. It will survive, but most probably in pockets and with a growing emphasis on so-called destination retail with theatre at its heart, concentrated in major cities, or affluent market towns, at the expense of poorer provincial towns.
There are chains investing in stores such as Primark and JD Sports but they are the exception to the norm. Retail parks are set for a resurgence too as cautious shoppers shun public transport and city centres. And designer outlets such as Cheshire Oaks and Swindon’s McArthur Glen still command rich valuations.
Perhaps the work-from-home phenomenon will prompt a long overdue revival of local areas driven by local entrepreneurs. Otherwise, the familiar but depressing trend of the last decade and a half of rapid retrenchment and decline is set to continue as the online juggernaut hurtles on, leaving gaping holes in town centres up and down the country.
Town planners need to wake up and think of creative ways to revitalise the places where so many of us live and stop them turning into permanent wastelands.
