Selfridges has blamed a stoop in the variety of worldwide vacationers buying for luxurious items in the UK and weaker client confidence for a fall in annual gross sales, as the retailer racked up losses for a fifth 12 months in a row.
The upmarket division retailer chain reported a 7 % decline in gross sales in the 48 weeks to 4 January 2025 to £775 million ($1.05 billion) in contrast with £835 million recorded over the 53 weeks of its earlier 12 months.
Losses narrowed to just about £16 million from virtually £42 million the earlier 12 months however the group has not made a pre-tax revenue since 2019, earlier than the coronavirus pandemic pressured retailers to shut their doorways for months at a time.
Selfridges Group has 4 shops in the UK, together with its flagship on Oxford Street in central London, two retailers in Manchester and one in Birmingham, alongside its on-line operations.
The retailer mentioned it was affected by the impression of the axing of tax-free buying for vacationers, which it mentioned had made the UK a much less enticing vacation spot for rich guests wanting for luxurious purses, clothes and watches.
Retailers have beforehand mentioned US or Asian consumers usually tend to purchase such gadgets in European cities such as Paris and Milan fairly than London for the reason that tax adjustments.
It mentioned gross sales final 12 months had been additionally knocked by rises in the value of luxurious items, on the identical time as customers had been going through value of residing pressures.
Inflation and better vitality prices led to prospects protecting a tighter maintain on their wallets, “undermining consumer confidence to spend on luxuries and non-essential items,” in line with the corporate’s annual accounts.
Selfridges was based in London by the American businessman Harry Gordon Selfridge in 1909 and has been named one of the best division retailer in the world 4 instances. The retailer’s London retailer is a well known vacationer attraction, the place it places on themed buying occasions and artistic shows as nicely as providing effective eating and promoting designer items.
The firm’s most up-to-date outcomes cowl the interval the place a stake in the division retailer chain was purchased by Saudi Arabia’s sovereign wealth fund. The Saudi Public Investment Fund mentioned in October 2024 it had signed a deal to purchase a 40 % stake in Selfridges for an undisclosed sum, including Selfridges Group to its holdings in a string of different luxurious department shops around the globe.
The stake was beforehand owned by Signa Group, the Austrian property firm that purchased Selfridges with the Thai conglomerate Central Group for £4 billion in 2021. Central Group subsequently took full management final 12 months, after Signa filed for insolvency.
Christmas is somewhat underneath three months away and Selfridges and different retailers are gearing up for the essential festive buying and selling season.
The firm has mentioned its Christmas store home windows, unveiled in November, may have a Disney theme, as a part of a tie-up with the leisure firm, whereas it has already launched a Christmas retailer, promoting presents together with hampers costing from £85 to £600.
By Joanna Partridge
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Saudi Wealth Fund to Buy 40% Share in Selfridges
The nation’s Public Investment Fund is ready to develop into a minority companion in the UK division retailer chain after shopping for out the place of the now-insolvent Signa Group.