One of the UK’s most famous department store chains, Selfridges, is being sold to a Thai-Austrian alliance in a multibillion-pound mega deal. The new parent company will take over all the stores across Great Britain, and the CEOs have stated that they plan to expand on the already well-established luxury brand. Brands being bought out by major parent companies is a growing trend in the business world, and it can bring about numerous benefits for the company that’s been bought. So, what does this acquisition mean for Selfridges? Are there any lessons to be learned from other recent company purchases? Selfridges Sold in Massive Deal In a deal worth around £4 billion, the Thai Central Group and Austrian property form, Signa, combined to purchase the majority of Selfridges Group. This will give the coalition full control of all 18 stores in the UK, Ireland, and the Netherlands. However, the deal did not include the seven stores located in Canada, which are still owned by the billionaire Weston family who bought Selfridges in 2003. The chain of luxury department stores was founded by Harry Gordon Selfridge in 1908 and has developed a world-famous reputation in decades since then. It is best known for its flagship store on Oxford Street in London, which is one of the most iconic and visually appealing buildings in the capital. The Central and Signa 50/50 partnership will continue running the stores under their control, meaning that they will still be responsible for more than 10,000 jobs. After the purchase is complete, though, Tos Chirathivat of Central and Dieter Berninghaus have expressed a desire to expand on the brand and develop its online stores in an omnichannel proposition. Many Big Brands are Owned by Parent Companies There is no doubt that the Selfridges deal is one of the highest-profile and expensive acquisitions in business history. However, it’s easy to see how all parties benefit from it. Selfridges Group gets a huge pay-out, and Central and Signa have a well-established brand under their control that they can capitalise on. These types of mergers have been seen in every area of the business world, but they can often happen for different reasons. In highly competitive industries, it can be a way for smaller brands to gain recognition, while the companies that buy them can grow even more dominant. There are various examples of this in the highly saturated iGaming industry, where smaller developers are often bought out by well-known behemoths. An example of this was in 2019 when NetEnt completed the £220 acquisition of Red Tiger Gaming, a slot game studio that was rising rapidly and gaining a lot of attention. Providers of iGaming entertainment are also bought out in the same way. For instance, Race Casino, one of the best new slot sites in the UK, is a brand of L&L Europe Ltd. This deal enabled the site to boost its offerings to more than 1500 slots, along with being able to provide a deposit match welcome bonus. Had the site been operating as a smaller company without the parent investment, it may not have been able to do this. Despite parent companies often owning a few different brands, each one can keep its own distinctive style within the conglomerate. For example, the Central Group in Thailand is renowned for having options to target a wide spectrum of different customers from all walks of life, with the department stores found in almost every city in the country. With its Selfridges purchase, though it is likely to stick with the high-end vibe with its marketing and keep this brand as a relatively exclusive option. People who love shopping at Selfridges don’t need to worry about the chain after this acquisition. Judging by other company buyouts in different areas of industry, having a parent corporation can often add better benefits that are passed on to the customers.
