Relief from recession-induced penny-pinching may be a pipe dream, but Paul Kelly believes he has found one solution—hard work. He should know. As chief executive officer of Selfridges, Kelly oversees the world’s highest-turnover prestige beauty floor and arguably its most exciting.
“[Times] are tough, but they’re only tough if you do nothing to make them better,” says Kelly, who travels between London and Dublin regularly since he also oversees operations at Ireland’s Brown Thomas luxury chain, which, like Selfridges and Holt Renfrew in Canada, is part of Galen Weston’s retail empire. “It isn’t a cake walk, but you’ve got to do things to make things happen.”
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For 100-year-old Selfridges, that call to action included preparing the groundwork for an overhaul of the flagship’s beauty department as financial institutions around the world crumbled in 2008. Now, at a time when city traders are mulling new careers as kindergarten teachers, Kelly is continuing the revamp of the 20,000-square-foot ground-floor space in an effort to reach his goal of creating the best store in the world.
“That’s what we’re working on every day,” he says. “We have a very big and successful beauty business, so we have a lot of encouragement based on our business in the past. No one is recession proof. No one can escape it, but some cope better than others. We have the confidence to invest because we believe in the business and we don’t believe [the recession] will last forever. When we come out, we will be in a better position.”
So far, that mentality seems to be working. Industry sources estimate Selfridges’ Oxford Street beauty department in London generates annual sales in the region of $114.4 million to $130.8 million and is on track to deliver double-digit growth this year. Kelly attributes Selfridges’ fortunes to his staff’s grit, devoting the right amount of space to the right brands and an unyielding determination to remain true to the store’s raison d’être. “Our brand values are about being extraordinary, inspiring, friendly and captivating—that’s what we’re all about,” he says, noting in October the Oxford Street store hosted a pop-up restaurant on its roof fronted by celebrated chef
Pierre Koffmann as well as a wacky counterculture ice-cream counter in its basement. “All that happening sums up what Selfridges is all about. It’s about a team of people who remain focused on our vision and doing it every day,” he says.
The store’s mission statement also includes a Barnum & Bailey–like devotion to diversion and entertainment for consumers from all walks of life. “When times are tough, people gravitate toward things they feel confidence in and that entertain,” says Kelly, adding the Oxford Street refurbishment has created a greater sense of space within the beauty department and sets Selfridges apart as the purveyor of a one-of-a-kind shopping experience. “There’s an electricity and activity when you walk in. You know there’s something going on. It’s the heart of the store.”
Indeed, on any given afternoon, the beauty floor is a hive of activity. Facials are on offer in full view of passersby, eyebrow-threading stations are an angular scrum of raised elbows and myriad makeovers are under way at bustling counters. “There is great energy,” says Kelly, adding he’s so confident about Selfridges’ appeal that the store is moving away from gift-with-purchase promotions. “What being a good shopkeeper is all about is bringing great customer service and entertainment value. That’s what we set out to do in our stores. Gifts-with-purchase were not adding anything to the business.”
Even when the Oxford Street’s beauty floor revamp is completed, Kelly has no intention of availing of the store’s countless relaxation options just yet. “We can never sit back and say we’ve done all we can do,” he says. “The day you do that, you’re dead. Words like complacency don’t exist in our vocabulary.”