Department store chain Harrods has shared its latest yearly financial results, showing a significant turnaround from the challenges faced during the Covid-19 pandemic. The luxury retailer, which reported a £348 million loss in 2021, has now returned to profitability, with a £232 million pre-tax profit for the year ending January 28, 2023.
The improvement was primarily driven by a resurgence in international tourism and a strong performance from Harrods’ online and personal shopping services. The company’s customer base has shifted towards higher-spending clientele, with the number of transactions over £1,000 increasing by 30%. Harrods has attributed this trend to the increasing popularity of luxury experiences and the desire for personalized services.
Harrods also invested heavily in its physical stores during the year, including a major renovation of its famous food hall. The store’s iconic Egyptian escalators were fully restored, and several new dining concepts were introduced. The in-store experience remains a central focus for Harrods, with the company continuing to offer exclusive products and services that cater to discerning customers.
Despite the strong performance, Harrods acknowledges the ongoing challenges in the retail industry, including rising inflation and supply chain disruptions. The company is implementing a number of initiatives to mitigate these challenges, such as optimizing inventory management and exploring new sourcing options. Harrods also plans to continue investing in its online presence and personalized shopping services to enhance the customer experience.
Michael Ward, Managing Director of Harrods, said: .
