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Central Group Europe, Selfridge’s operating company, is said to be targeting regional cities in the UK for the first time in 20 years, according to the Financial Times.
The luxury department store group currently operates from Oxford Street in London, as well as one store in Birmingham and two in Manchester.
According to the outlet, the news comes as the group anticipates a period of difficult trading as an absence of affluent tourists has been “largely” mitigated by efforts to increase domestic shopper numbers, while soaring energy costs put pressure on local consumers.
A more immediate priority for Selfridges is reportedly the refurbishment of its Oxford Street food hall, which could take two to three years, while managers are also evaluating options for the former hotel and car park behind Selfridges’ main store building, which have remained largely unused since the hotel closed in 2008.
High-end department stores have traditionally traded from a small number of sites in premium cities to reflect the narrow customer base for their expensive stock and the high operating costs of large stores.
However, the closure of many mainstream department stores has reportedly created gaps in some large cities.
It is reported that Selfridges is the subject of a planning inquiry after the group submitted a proposal to redevelop the site into a mixture of office and retail use.
Stefano Della Valle, chief executive of Central Group Europe, told the Financial Times: “Our strategy is not to stay only in capital cities with stores of 20, 30 or 50,000 square metres, but also to be present in second-tier cities or even small cities like St Gallen in Switzerland.
“We don’t have any plans as of today for new stores in the UK, but we are always alive to opportunities, like we were in Germany.“
He added: “We think we are the only viable solution for luxury brands in terms of distribution, so we are interested in being present not only in capital cities but in regional cities.”
