British Luxury Department Store Profits Fell Slightly In Fiscal Year Harrods

Michael Ward, managing director of Harrods, a luxury department store in Britain, recently revealed to the British times that the cost of the renovation of the London flagship store (Knightsbridge) flagship store has increased, and the impact of the shorter financial year has led to a drop in pre tax profits in the last fiscal year of Harrods.

In the last fiscal year ended February, Harrods's pre tax profits fell 3% to 172 million pounds over the same period last year. Although profits are falling, Harrods sales have increased to 869 million from 863 million a year ago, focusing on top luxury goods and exclusive cooperation with big names such as Dior to help the Department Store attract more customers.

In the past year, Harrods has invested a total of 64 million 100 thousand pounds to refurbish the London Knights flagship store, and investment spending has increased by 17% over the same period last year. But Michael Ward also pointed out that these investments are all for future profits.

　　 Above: Harrods London Knights bridge flagship store

The renovation of the flagship store in London mainly includes the upgrading and upgrading of the beauty area, the renovation of the food area, and the addition of a whole layer of men's wear and sportswear area. The store closes and refurbished area is 185 thousand square feet (about 17187 square meters). Harrods is trying to attract more young consumers through renovation, so as to constantly update its customer base. Michael Ward said: "for the old department stores like Harrods, 1/3 of the consumer group in the cosmetic area is the millennial generation. We have experienced 18 months of painful refurbishment, but it is worth it. "

In addition, Michael Ward also pointed out that if the left leaning Labour leader Jeremy Corbyn was finally elected prime minister, the government under its leadership might reintroduce foreign exchange control (the government imposed restrictions on currency circulation) to prevent more funds from going abroad, which would scare away the rich tourists and ultimately have a negative impact on the company's sales. Britain's last cancellation of foreign exchange control was in 1979 when Mrs. Thatcher was in power.

Michael Ward revealed that he had noticed that the rich began to transfer their funds abroad. Compared with British consumption, Harrods's performance is more dependent on international tourists' consumption. However, whether wealthy customers move abroad or tourist tourists consume less, they may hurt their business.