Selfridges to open private members’ club in Oxford Street flagship

Selfridges wants to convert 630 sq m of its London flagship store from office space to an invitation-only club with high-end dining facilities.

Estates Gazette said the company has submitted a planning application for a club to be called 40 Duke with expectations that it will open next spring. The plans for the fourth-floor space include a bar, lounge, external dining space and private dining room.

The project is expected to cost around £100 million with Westminster City Council reportedly in favour of the plan and the development scheduled for consideration by the council’s planning committee next week.

It’s a tough time for UK retail and the loss of VAT-free shopping for tourists has hit retailers like Selfridges hard. The retailer posted an almost-£42 million loss in the latest year for which it has filed accounts (the 12 months to February 2024) as revenues dipped by 1%. But while the wider loss was largely attributed to accounting standards changes, that revenue dip in the face of high inflation during the period shows achieving sales growth remains a big challenge.

The company, which is majority owned by Thailand’s central Group with Saudi Arabia’s Public Investment Fund last year having bought the smaller stake held by Austria’s Signa Group, will be looking at ways to boost revenue and connect more strongly to its target customers.

Selfridges is being advised by property consultants from Montagu Evans, which said the retailer “must continuously carry out refurbishment and improvement to sustain its prominence within what is a fast-paced and demanding industry. The proposal will allow Selfridges to continue to thrive and succeed along a world-renowned shopping destination that is Oxford Street, supporting the international shopping centre and the vibrancy of London’s West End.”

Such clubs are increasingly popular in London and retailers have tapped into their appeal boost engagement with affluent consumers.

But not all choose to open them on-site. In fact, in late 2023, Harrods opened a private members’ club not in its Knightsbridge flagship but thousands of miles away in Shanghai as it worked to reach out to affluent Chinese consumers in their home city.

Yet while some go down the club route, not all retailers want to get rid of office space either. In fact, nearby M&S and John Lewis both have plans for their Oxford Street flagships that will see a reduction of retail space with office space expanding as demand rises in the face of fewer companies allowing staff to work from home.