Selfridges reports profits up by 18% as investment pays off

Operating profits at luxury department store group Selfridges were up 18% to £180m in the year to 28 January as its significant investment in its stores has started to pay dividends.

Sales at the group were up £200m to £1.6bn in the same period, according to The Times. The results are in contrast to the prior year when profits had dropped by 1.9% due to an "unprecedented" £300m capital expenditure programme, which included the creation of a various new departments at its Oxford Street flagship such as a new accessories hall (said to be the world's largest), a Body Studio and Designer Studio.

Managing director Anne Pitcher told the newspaper that the investment was paying off as was Selfridges' commitment to experiential retail. Recent projects have included a Shakespeare Refashioned season to celebrated the 400th anniversary of the author's death and the Our House campaign designed to recall the vision of its founder Gordon "Harry" Selfridge, who had dubbed the store "The House".

“Our stores provide a real sense of fun. Where else but Selfridges could you find yourself in the middle of a Shakespearean play, or in the middle of a dance performance with choreography by the Royal Ballet, or having makeovers and make-up tips from Charlotte Tilbury and Victoria Beckham?” Pitcher told The Times.

The retailer also said that more shoppers than ever had visited its stores, including those in Manchester and Birmingham and that its website had "continued to grow rapidly" with consumers in 130 countries.

Pitcher said the store, which recently unveiled its Christmas windows, was optimistic for strong trading over festive season.