Selfridges Future in Question as Sales Drop Amid Falling Foreign Visitor Numbers

The owner of Selfridges has issued a stark warning about the impact of declining numbers of wealthy foreigners shopping in London. Cambridge Retail Group CRG, which controls the renowned British luxury department store, reported a significant sales decline equating to a £130 million revenue hit. Turnover fell to £1.44 billion, down from £1.57 billion the previous year.

This drop fuels concerns for Britain’s luxury retail sector, especially following the government’s decision to abolish taxfree shopping for international tourists. The move, made under Rishi Sunak while Chancellor, has prompted affluent visitors to favour European destinations over the UK for highend shopping. Selfridges’ owner pointed directly to this shift as a main cause for its downturn.

Lisa Nandy, the culture secretary, recently acknowledged persistent lobbying to reinstate taxfree shopping. She stated that Labour would carefully review available evidence. However, with the current Chancellor facing a deficit between £20bn and £50bn, hopes for a nearterm policy reversal among luxury retail executives remain dim.

The company is jointly owned by Saudi Arabia’s Public Investment Fund and Thailand’s Central Group, itself a major familyowned retail conglomerate. Despite the challenging consumer environment, CRG’s diversified portfolio which includes De Bijenkorf in the Netherlands as well as Brown Thomas and Arnotts in Ireland offers some insulation from UKspecific woes.

Gross profits dropped by about £50 million to £792 million. Meanwhile, sales at Selfridges specifically fell 7 percent to £775 million. CRG attributed part of the decline to updates in its financial year reporting, with a slightly shorter period accounting for some of the decrease. These are the first results published under CRG’s new ownership structure, following a period of upheaval including the exit of Rene Benko’s Signa and a subsequent fraud investigation involving the previous owner.

With London’s allure as a luxury shopping destination now threatened and uncertainty over tax policy reform, highend retailers such as Selfridges face strong headwinds. The coming months will likely prove critical for assessing the longterm health of the sector.