Department store proposes £100M fourth-floor transformation amid push for new revenue streams
Selfridges is planning to open an invitation-only members’ club within its Oxford Street flagship as part of a broader effort to diversify revenue and deepen engagement with high-spending customers. A planning application submitted to Westminster City Council details a £100 million project to convert 630 square meters of fourth-floor office space into a hospitality-focused venue called 40 Duke, set to open as early as spring 2026.
The proposed space will include a bar, lounge, private dining room, and outdoor dining area. This move comes at a challenging moment for the company. Selfridges reported an almost £42 million loss in the fiscal year ending February 2024, with a 1% decline in revenue. While some of the loss was attributed to accounting changes, the drop in sales—despite high inflation—points to ongoing difficulties in achieving meaningful sales growth, particularly after the elimination of VAT-free shopping for international tourists.
Backed by Thailand’s Central Group and Saudi Arabia’s Public Investment Fund, Selfridges appears to be leaning further into experience-driven retail. While nearby competitors like Marks & Spencer and John Lewis are repurposing retail space into offices, Selfridges is banking on a different strategy: turning its store into a high-end social hotspot.
Private clubs have become increasingly popular among luxury brands looking to build community and loyalty with affluent consumers. Harrods opened a similar concept in Shanghai in 2023, but opted for an off-site model targeting high-net-worth clients abroad. In contrast, Selfridges is integrating its club directly into the flagship, pushing the store beyond retail, into experience and atmosphere.
If approved by the council’s planning committee, the project would signal a broader evolution in what department stores can be: less transactional, more experiential. For Selfridges, 40 Duke could become a template for how legacy retailers can navigate a market that increasingly values atmosphere as much as access.