Fortnum & Mason has capped a year where it returned to profitability with strong sales performance over Christmas.

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Fortnum & Mason benefited form ‘a marked revival in physical retail’

In a trading update for the 52 weeks to July 10, 2022, the retailer swung back into the black, reporting profits of £6.1m for the period, up from a loss of £2.7m the previous year. Turnover for the year soared 42% to £187m. 

The department store chain reported a 39% increase in total sales online for the period – up 160% on pre-pandemic levels.

It also reported an 8% increase in total sales year on year during the five weeks to December 25, 2022, after seeing the return of its customers to store despite the “challenging economic climate”.

Fortnum & Mason credited its growth during the period to “a marked revival in physical retail and hospitality” following the pandemic, and reported a 35% increase year on year in store sales.

The iconic London department store saw a “record season” for sales of biscuits, as well as a surge in sales of hampers, mince pies, tea and advent calendars.

In the lead-up to Christmas Day, Fortnum & Mason said £1 in every £2 was spent online.

The company also recorded “record days for sales” across its four UK stores, which is credited to a return in international tourism.

Chief executive Tom Athron said: “Although there is growing uncertainty over the economic and consumer spending outlook, at Fortnum & Mason we have plenty of exciting plans to ensure that we can continue to bring moments of joy into people’s lives throughout 2023.

”Early spring sees the launch of our new food and drink studio on the third floor at Piccadilly, which will be an innovative space for food production, education and events. We will also be launching our extraordinary coronation range so we can join the nation in celebrating [the coronation of] King Charles III. I’m also excited to welcome back our international customers as the world continues to open up.

“We have a large and ambitious agenda, and I’m excited by the opportunities that 2023 offers our business to continue growing and improving our customer experience both in-store and online.”