Piccadilly department store Fortnum & Mason has narrowed its full-year losses after posting record sales.

The retailer, which completed a£31m refurbishment of the iconic store during the year, recorded losses before tax of£8.2m in the year to July 13, an improvement on the£10.1m loss recorded in the previous year.

The retailer, which has entered into a consultation period with its 530 staff to slash costs, recorded a 17 per cent uplift in sales to£46m during the year. Gross profit margins were maintained at 28 per cent.

In figures filed at Companies House the retailer said that food and drink “showed a healthy increase” and the improvements to the store and new departments resulted in “exceptional growth” in non-food.

The retailer added: “The company has taken action to reduce its cost base in order to ensure that the business is well positioned to benefit from the upturn when it arrives and returns to profitability as soon as possible.”