Equity Loss Despite Revenue Surge: Cambridge Retail Group Holding in Focus

The Cambridge Retail Group Holding, owner of Selfridges and other prestigious department stores, experienced more than a doubling of its loss last year, despite sales rising to an impressive £1.6 billion. The increase in net loss to £340 million from £126 million the previous year was primarily due to a rise in financing costs, which almost doubled to £206 million. Despite a 95 percent increase in sales to £1.6 billion compared to £804 million the previous year, the burden of increased interest payments kept the company on course for further losses. The latest figures highlight the challenges faced by premium brands, as consumer behavior among wealthier customers remains subdued. Estée Lauder also responded to these market conditions by cutting its dividend, with the group's earnings forecast being withdrawn. In addition to financial losses, the owner of Selfridges reported the elimination of 500 jobs, reducing its total workforce to approximately 7,300 employees. These include not only the UK Selfridges stores but also De Bijenkorf in the Netherlands and the Brown Thomas as well as Arnotts brands in Ireland. The Thai Central Group, the majority owner of the luxury retail chain, acquired the portfolio in 2021 along with co-investor Signa Group from the Weston family for £4 billion. The partnership with Signa ended abruptly after the real estate giant owned by René Benko faced financial difficulties and eventually collapsed last year. Earlier this month, a new partnership with the Saudi sovereign wealth fund was announced, which now holds 40 percent of the operational units and real estate companies. Selfridges' standalone report in the UK, founded by U.S. magnate Harry Gordon in 1909, showed a slight increase in loss to £41.9 million on sales of £834 million. The Selfridges Group confidently commented on its performance last year, which recorded an additional million customer visits, and stated that it is operating in line with expectations this year.