Selfridges History Case Study

For months, the closure of UK department stores dominated the news. Over 160,000 stores shuttered in 2019, while other merchants battled to thrive in a changing environment. Other department shops, such as Selfridges, have demonstrated that with the correct approach and an innovative mindset, physical retail can thrive in this digital age. Selfridges' history demonstrates this simply, and we'll go over it further in this piece. We'll go into this company's past to discover the secrets to its success. On that topic, let's get started.

Selfridges History – Where It All Began

When Harry Gordon Selfridge chose to open his flagship retail shop in the heart of London, he was 51 years old. He was financially wealthy at the time and could have simply retired and enjoyed leisure activities such as golf. Despite trying this and spending time with his family, Harry Gordon Selfridge felt restless, even on his long vacations. He thought he needed another challenge, so he went in search of one.

At 25 years, Selfridge progressed from a stockman in a Chicago department store to the rank of junior partner. He not only made a nice living, but he also had a sizable stock portfolio. His wife was also a successful businesswoman who specialized in property development. As a result, Harry possessed extensive knowledge and remarkable talents in department store retail marketing. When the corporation declined to make him a full partner, he chose to resign and liquidate his stake. He then bought a Chicago department store. This did not last long, as he sold it within three months for a substantial profit.

He noticed how ancient British shopping traditions were while on a European tour in London. This was the challenge he had been yearning for, and he was overjoyed to have found it. He saw an opportunity to introduce current American architecture and retail methods to the United Kingdom. By doing so, he might redefine European customer expectations while taking on a new challenge. Selfridge set to work with this in mind.

Selfridge History – Building a Business

On a plot of land near Oxford Street, Harry purchased many companies. These establishments were located between Orchard and Duke Streets. In 1908, he began demolishing these companies, which grabbed the attention of most Europeans. He created the skeleton of the ironwork that would become the Selfridge department store after clearing off their ruins. The type of construction Selfridge desired was novel. Only one other building in London had employed this technology earlier, and that was the Ritz Hotel two years ago.

The structure of the building allowed them to put big windows around the outside of the store where the merchandise would be displayed. The idea was to draw shoppers from Oxford Street inside the business. Furthermore, the iron beams lifted the weight of the structure and eliminated the necessity for internal brick walls for support. This was a calculated move that doubled the amount of unencumbered area within the store where Harry would display the merchandise. This increased the display area over other London stores, and the store's stone and plaster facade gave it an imposing neo-classical appearance.

The store featured a blend of Greek and Roman columns, making it an ideal match for the Georgian neo-classical buildings that were springing up all over London. Furthermore, this architectural style provided potential customers the idea that the new structure was over a hundred to two hundred years old.

Selfridge History – Opening the Store

After an expensive advertising campaign, the business formally opened on March 15, 1909. Throughout the preceding year, the London press had ran stories on the building's progress. As a result, Londoners' excitement over the store's launch had grown. Selfridge drafted thirty police offers to keep the throng at distance in order to avoid a riot. This was relatively unusual for a store opening in London. Selfridge & Co was the name of his company, but the department store was simply known as Selfridge's.

To maintain the enthusiasm surrounding the opening of Selfridges, Harry used celebrities to keep the crowd coming back. For example, on July 25, 1909, the store showcased Louis Bleriot's delicate monoplane, which made him the first pilot to fly over the English Channel. Over 150,000 people visited the store in the four days after its launch. Harry consistently used retail theater to attract customers.

Selfridges would set up a display whenever a new event occurred or someone broke a new record. The top garden of the building was mostly used for special events. Harry expanded the store's popularity by bringing in fresh and fascinating product lines never seen or sold in London, according to Selfridges history. He was caught saying he was willing to sell anything from an airplane to a cigar.

Selfridges History – Changing the Norms

Harry also deviated from convention by displaying ladies' cosmetics and perfumes in front of the store. Selfridges offered such items in areas covered by blinds and inside rooms in various London stores at the time. Because of Selfridges' success, other corporations quickly followed this product placement strategy. The ladies adored it, resulting in increased sales for the department shop. Selfridges also had a delivery vehicle fleet. They were originally horse-drawn vehicles. They were, however, soon propelled by gasoline and electric engines. Furthermore, the firm logo was emblazoned on every side of the van. It quickly become a familiar sight around London.

One of the reasons Selfridges was so successful was that clients could now order large things such as furniture, which would be delivered directly to their houses. The added benefit was that your neighbors would see you shopping in Selfridges.

Selfridges history also revealed that the corporation pioneered the Bargain Basement idea between 1911 and 1913. This enabled the company to attract consumers from classes other than London's elite. The store made it simple to buy inexpensive products, which housewives could mix and match with more expensive items. The store also introduced a book department, which quickly developed to become the world's largest book store. Harry Selfridge was a dog enthusiast who realized that the majority of his clients had dogs. As a result, he established a section that sold everything pet owners required.

World War 1 and Its Effect on Selfridge

When World War I broke out, the majority of the men employed at Selfridge left to fight. As a result, Harry Selfridge hired women to fill their posts. Some of these women took on physically demanding occupations such as loading and unloading supply vans and stocking boilers with coal. At this point, Harry coined the expression "business as usual." Most of the men who went out to war died, and then the Spanish Flu epidemic struck, killing several women who worked at the store. Rose Selfridge, Harry's wife, was among those who perished.

After World War I and the plague passed, the company began to grow and do well. The corporation expanded its London store, and Selfridges added new locations outside of the city. The year was 1920, and there was a section that specialized in new fashion. Pogo sticks, scarlet lipstick, and lengthy necklaces were among the most recent trend items. In addition, the business continues to promote and conduct unique events.

One such event was John Logie's demonstration of the first television in 1925. The BBC was broadcasting the live music broadcast from the store's roof at the time. Selfridges was the most prominent European Retail group at this point in its existence. They had retail locations in Oxford, Leeds, and Sheffield.

World War II and the Years After

The 1930s depression had a substantial impact on consumers' capacity to spend as much as they did in the 1920s. Selfridges survived the economic downturn. However, because to his massive debt, Harry Selfridge was compelled to resign. During the London Blitz of World War II, Selfridge bricked up the huge windows for safety and security concerns. The roof was destroyed three times by German bombings, yet the shop continued to operate.

Lewis Investment Trust bought the company in 1951, ushering in a new era of success. People were able to buy more electronic consumer products when their household incomes increased. In 1956, there was also a rise in car use, so Selfridges created a new modern multi-story car park at the back of the store. It included valet parking and a heated car ramp for chilly, icy days. This allowed consumers to stroll directly from their car into the business without having to cross the street, a first in London.

The company changed hands again in 1965, when it was sold to Sears Holdings for £63 million. Miss Selfridges was opened by the corporation to cater to young teenagers and their fashion needs. Selfridges now had a coffee shop, and they played pop music from speakers in the shop, which became an instant hit in London.

Selfridges Today

Selfridges has grown from strength to strength, and sales have risen. Throughout the 2000s, the corporation maintained high profit margins. This was clear in their 2019 report, which showed that Selfridges' full-year sales increased by 6% to £1.85 billion. In addition, by investing in its physical and digital sales channels, the company generated good sales in 2019.

Although Selfridges has seen constant growth throughout its existence, its digital approach is key for its expansion in the 2000s. The company invested on its mobile app and website to ensure that local and intentional clients could readily receive their products. This method assisted the organization in building client loyalty as they seek a better experience.

Selfridges also has four physical sites in major metropolitan areas. This allowed them to concentrate their efforts on improving the client experience at the store. Selfridges would have failed if the proper strategies had not been implemented. However, Selfridges' history demonstrates a commitment to creating a store that is a destination in and of itself, and the company continues to work in this direction to this day.