Selfridges has more than halved its losses, despite posting a small dip in revenues as it focused on higher margin sales.
The luxury department store chain posted a pre-tax loss of £15.9m in the 48 weeks to January 4, less than half of the £41.9m loss it racked up the year before.
Sales fell 7% to £774.6m, down from £834.9m, which it attributed to a shorter reporting period for the year and ist focus on more profitable sales particularly online.
Operating profit surged 52% to £42.2m in the period, driven by effective cost control and focus on higher margin business.
Selfridges said in a statement: “[The company’s] trade and turnover continued to feel impacts from various economic factors: reduced numbers of international visitors visiting the UK and shopping in Selfridges’ stores, with the ongoing impact of the loss of tax-free shopping for international shoppers.
It also reported that “disruption to some supply chains due to worldwide conflicts and shipping route delays, inflation and exchange rate fluctuations, price increases across luxury brands, alongside higher costs of living, high energy costs and other economic conditions” were impacting consumer confidence.
Selfridges is owned by Thailand’s Central Group, which holds a 60% stake, and Saudi Arabia’s sovereign wealth fund, which snapped up a 40% share from the collapsed Austrian firm Signa last year.
The department store chain is set to open its first members club, 40 Duke, on the fourth floor of its Oxford Street flagship next year. The space will feature a bar, lounge, external dining space and private dining room, able to host up to 144 guests.
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