Brand Innovation Debrief: Selfridges

On 3 February 2024, Fenwick, one of London’s oldest and most iconic department stores, shuttered its doors forever. Simultaneously, Germany’s historic Kaufhaus des Westens filed for bankruptcy, with only the Berlin store now surviving, and in the US, Macy’s announced that 150 of its stores would close by 2026. Today, department stores exist in a challenging environment, offering neither the efficiency of their e-commerce rivals nor the rock-bottom prices of fast-fashion behemoths.   

Against this backdrop, Selfridges continues to succeed as a customer-favourite and profitable department store. The British multibrand luxury retailer operates only four large locations across London, Manchester and Birmingham, alongside an online business serving global customers.

In 2023, the company reported a 29% increase in revenue to £843.7m ($1.09bn, €985m) for the 52 weeks ending 28 January 2023 (source: The Industry), making it the second-largest department store in the UK after rival Harrods.

Selfridges’ success is not merely a result of its history. The brand strives to differentiate itself from competitors in both physical and digital retail spaces. First, it understands the importance of creating Hyperphysical Stores (making the bricks-and-mortar experience more engaging, sensorial and memorable). Second, it curates culturally astute products and experiences. Third, it reaffirms its position and legacy as a landmark destination and a trendsetter. 

‘We want our stores to be spaces where people can experience an instant buzz when they walk through the doors,’ Leonie Foster, COO of Selfridges, tells LS:N Global. ‘Whether that’s through the brands we stock, artists we collaborate with, or unexpected experiences we offer. We know that energy is something this audience really loves about Selfridges.’ 

Redefining retail through sustainability 

In 2020, Selfridges launched its landmark sustainability strategy Project Earth committing to overhauling its retail spaces and business practices to better align with the planet’s needs. Its first Project Earth report, released in 2022, outlined ambitious goals aimed at revolutionising retail and guiding the company towards a net-zero future by 2050. In 2023, Selfridges revised this mission, now aiming for net zero by 2040.  

Project Earth, which evolved to become ReSelfridges in 2024, goes beyond mere marketing or greenwashing; it fundamentally shapes the department store’s operations, from the materials used in-store and for packaging to the circular shopping model the brand aims to promote. ‘We know achieving our ambitions won’t be easy, but we are in a unique position to use our platform to work with our team, partners, and customers on co-creating change,’ Foster says.

ReSelfridges focuses on bringing circular initiatives to the forefront, encompassing rental, resale and repairs. That’s why in January 2024, the retailer announced a permanent concession space for Sojo, a B Corp-certified clothing alterations and repair company (and one of our Futures 100 Innovators nominees).

In April 2023, Selfridges launched its Worn Again season, dedicated to second-hand shopping, swapping, repairing, upcycling and trading. This initiative aligns with the company’s broader ambition to ensure 45% of all transactions come from circular products and services by 2030. ‘We even transformed our Corner Shop into a ‘stock exchange’ to help customers see and retain the value of items they already owned,’ says Foster. As revealed in our Luxury Recrafted macrotrend report, sustainability is pivotal for luxury brands to resonate with younger audiences. 

Other activations included an exclusive atelier concept from French designer and upcycling specialist Marine Serre, a car boot sale and a pop-up from American fashion brand Coach, entirely focused on circular craft. 

Unlocking loyalty 

In July 2023, Selfridges loyalists were finally rewarded when the department store unveiled its first-ever loyalty scheme, Unlocked. ‘We’ve always prided ourselves on keeping the customer at the heart of our business, and the launch of Unlocked felt like the natural next step in connecting with them on a deeper level,’ Foster tells LS:N Global. Customers who sign up gain first access to events, services and product launches.  

‘We were always clear we wanted to do things differently when it came to membership,’ adds Foster. ‘It was important to lean in to what we’re famous for: our only-at-Selfridges collaborations, landmark destinations and extraordinary experiences.’  

Selfridges’ loyalty programme diverges from the typical points-and-rewards model, instead following an everyone-is-welcome ethos for members, known as Keyholders. ‘Unlocked pays homage to our founder Harry Gordon Selfridges, who handed out keys to the first customers,’ explains the COO. ‘We’ve created an open-to-all community without barriers that seeks to build genuine relationships with our customers, rather than go after transactional loyalty.’ 

The scheme has been successful so far. ‘We’ve seen double-digit growth of Unlocked Keyholders in 2024,’ Foster discloses. ‘This is just the beginning; we have huge plans to evolve Unlocked and create richer, more distinct benefits as our customers’ relationship with us grows.’ 

Generating Gen Z-approved experiences 

If its unwavering commitment to sustainability isn’t enough to win over Gen Z, its plethora of collaborations with celebrities and in-the-know brands certainly sweetens the deal, a trend that we forecast in our Luxury States: New Codes of Luxury 2024-2025 macrotrend report. 

In 2022, Selfridges dominated some social media feeds with images of Jacquemus’ Le Bleu swimming pool pop-up. ‘As a brand, we remain at the zeitgeist of the biggest cultural moments and have a unique point of view on what’s happening around us. This very online generation really resonates with that,’ says Foster. 

In the run-up to Christmas 2023, pop singer Harry Styles took over a part of Selfridges, bringing his beauty brand Pleasing to The Corner Shop. The latter was transformed, drawing visual cues from Gen Z aesthetics, and stocked with nail polishes, cosmetics and clothing. Live performances also took place, turning the entire experience into a social media goldmine. 

The luxury department store has also introduced its Yellow Pages, a ‘directory of now’ showcasing the best of fashion, design and culture. A 72-page publication was released in September 2023, with the intention of capturing the season’s creative agenda. The directory included information on product launches, installations and activations with brand partners, and the launch of its music venue Selfridges Lounge.