Weekly Retail & Leisure News - 02 November, 2015
Selfridges has revealed record results as it gears up for the Christmas season. The luxury department store, owned by the Canadian branch of the Weston family, saw sales rise 4.3% to £1.3bn in the year to January, with operating profits up 3.4% to £155m. All four of Selfridges’ stores recorded growth, while overall results were boosted by a strong performance from the online business, which delivers within the UK and to more than 130 other countries. During the year the company began a £300m refurbishment of its Oxford Street flagship, which JLL’s planning team are advising on. The refurbishment aims to ‘place Selfridges in the top tier of global luxury retailing,’ according to its group managing director. Selfridges continues to provide customers with an unparalleled diversity of mix and service, meeting the broader needs of the modern 'visitor', through initiatives such as an in-store skate park, a personalised Christmas gift service and a continuing focus on improving the food and beverage offer.
Harrods also released results last week, with turnover for the year to the end of January down from £794m to £769m. However, gross transaction value rose 1.2% to £1.39bn and operating profit increased 2.9% to £126.5m. The seven-storey luxury store attracts more than 15 million shoppers every year and continues to be an established landmark for many wealthy tourists when visiting the UK.
Away from London luxury retailing, the British Retail Consortium (BRC) has warned that high street retailers across the country could have to pay an extra £14bn by 2020 to meet a raft of new tax changes and initiatives introduced by George Osborne. With the country’s retailers already grappling with significant structural challenges, the burden of paying business rates, the chancellor’s national living wage and apprenticeship levy proposals mean that their costs will soar. Tim Vallance, Head of Retail and leisure at JLL, commented previously on how the business rates model needs to be updated; ‘The unwieldy and bureaucratic system has been a hindrance to many retailers post-recession, most notably as a result of the time lag between rating revaluations and the one size fits all approach.’
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Director, Head of Retail Research (UK & EMEA)
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Director, Head of UK Retail & Leisure
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