Tos Chirathivat, co-owner of Selfridges and executive chairman and CEO of Thailand’s Central Group, has acknowledged that the £4 billion price tag attached to Selfridges and several other European luxury department stores was too high, especially given the rise in global interest rates.
In his first interview since purchasing the portfolio in 2021, Chirathivat told the Financial Times that the price was “high” in hindsight.
“You would always aim for the lowest possible price when buying something… is £4 billion high? Yes, it’s high, especially in this environment,” he said.
However, he indicated that the investment could prove worthwhile long term: “Maybe 10 years from now it won’t be too high, but if you ask today, then of course it’s too high.”
Central Group, which also owns Dutch luxury department store chain De Bijenkorf and Brown Thomas and Arnotts in Ireland, acquired a majority stake in Selfridges from the Weston family. However, the deal has faced difficulties. Its partner, Signa Holding, which co-invested in the acquisition, collapsed at the end of 2023.
Chirathivat said that Central Group was unaware of Signa’s dealings with Saudi Arabia’s Public Investment Fund (PIF), which subsequently increased its stake in the retailer to 40%: “He only told us later when it was done… that he sold part of it to the PIF.”
Despite complications, Central Group remains focused on transforming the heritage British department store chain, particularly its flagship store on Oxford Street, with plans to enhance the six-storey building with new products, services, and more luxury brands.
“We have three good floors [of six]… we are working to improve every area,” Chirathivat said.
“The grand plan for Selfridges is to become the best store in the world. Right now, it’s probably in the top five.”
In May, Central appointed André Maeder as CEO of Selfridges Group to lead the transformation. Looking forward, Chirathivat felt optimistic, telling the Financial Times, “We can do a lot more.”
