Selfridges ponders selling off ecommerce operation

Selfridges has pondered selling off its ecommerce operations, according to Bloomberg.

The company has considered the opportunity of a possible spin off of the ecommerce arm, which is less lucrative than its property holdings division.

The company’s wider sale price is expected to be approximately $4 billion when its controlling Weston family eventually decides who will buy the firm.

While the company hasn’t commented on the topic officially, Bloomberg said: “person close to the retailer said that it’s not currently under consideration”.

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The move would be similar to that of the Saks Fifth Avenue, after it agreed to separate its Saks and SaksOff5th websites from its physical stores after a $700 million investment from Insight Partners.

While the two arms are separated, the retailer still controls the marketing, merchandising and intelluctual property surrounding the web operation.

The news that Selfridges have considered the same would probably mean that it would follow a similar model as a thriving ecommerce operation is pivotal for retailers in a post-pandemic world.

The UK department store sector has a seen a shift in the way it operates in recent months, with Debenhams ditching its high street presence and moving solely online.

John Lewis has also made preliminary moves that will see its ecommerce operation become larger than its physical stores post-pandemic.

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