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miniming
18-07-2021 07:49:17

What Can U.S. Department Stores Learn From An Old World Retailer Like Selfridges?

https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F60f1852dfe8b42ce1dca741c%2F960x0.jpg

After all, Dillard’s, Macy’s, Nordstrom as well as luxury stores like Sacks Fifth Avenue or Neiman Marcus have many branch storers and a diverse clientele.

I will explore B of F viewpoint since it is a serious approach to a very serious subject. The article is written with the Selfridges Department store as a background. Selfridges recently received an offer for $5.7 Billion. It is a very high figure, albeit the real estate is estimated at $2.8 Billion by itself. For fiscal2020, the company reported sales of £1.97 Billion ($2.72 Billion) with pre-tax earnings dropping two thirds from £98 Million to £34 Million ($135.2 Million to $46.9 Million). The pandemic caused by COVID-19 was responsible for the sharp drop in earnings.

Selfridges has stores in London (Oxford Street), Manchester, Birmingham and Ireland. It is owned by the W. Galen Weston estate. (W. Galen Weston passed away on April 12, 2021.) The estate is now run by W. Galen’s children, William Galen Jr and Alannah, who is chairlady of Selfridges..

The company has undergone many changes since its founding in 1908. Recently, in 2017 or 2018, the company opened a Body Stand for women’s lingerie, swimwear, pajamas, and party gear and accessories. It has been very successful. pg slot

The company has also adopted the concession model. Suppliers now control large parts of the selling floor and Selfridges has become a landlord; it maintains a new tenant relationship leasing space to top fashion brands. I had seen the concession arrangement working well at Galeries Lafayette in Paris, where major designers had taken over real estate space and displayed their newest creations attractively. Concessionaires have to adhere to such store rules as opening or closing hours and manning their space with effective sales people. However, there was no cross-selling, as we often expect in US department stores.

Selfridges has special events such as art installations and a skateboard bowl for young customers. It also has a number of restaurants and a Face Gym. There are constantly new experiences in London’s Oxford Street store. There is also a new accessories hall designed by David Chipperfield that cost $415 Million.

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