Selfridges, the iconic department store, was able to navigate the tumultuous year of 2020 surprisingly well, despite facing the harshest retail environment in recent memory. Chief Executive Anne Pitcher characterized it as the most trying time in the company’s long history, which spans over a century.
While specific financial figures for the 2020/21 period are yet to be disclosed, the impact of store closures during extended lockdowns was significant. Last summer, Selfridges had to implement 450 job cuts as part of its strategy to recover slowly from the challenges brought on by the pandemic. Sales were anticipated to be notably lower compared to the previous year, 2019.
Pitcher emphasized that the strong performance in 2019 positioned the company well to weather the storm in 2020, with online sales serving as a vital lifeline during store closures. The focal point now is on future foot traffic, especially in city centers where Selfridges outlets are situated. The decreased presence of international and domestic tourists, as well as office workers who were key customers, has had a significant impact on the number of visitors.
During the 2019/20 financial year, Selfridges reported a 7% increase in sales, totaling £1.97 billion in turnover. Despite this growth, operating profits experienced a 10% decrease to £88 million, while pre-tax profits fell from £98 million to £34 million. These shifts were influenced by new accounting standards related to leases and substantial investments made by the company.
Selfridges has been concentrating on enhancing not just the retail spaces within its stores but also on introducing new, exciting experiences such as a cinema in its flagship Oxford Street location. The company’s ability to adapt to the challenges posed by the pandemic and its investments in innovative offerings bode well for its future success, despite the ongoing uncertainties in the retail industry.
For more details, check out Selfridges’ official website here and for insights on the latest retail trends, visit Retail Gazette here.
