Despite a significant surge in sales, Selfridges has reported more than a doubling of losses in their latest fiscal year.
- The company’s pre-tax losses reached £340 million, sharply rising from £126 million the previous year.
- Sales at Selfridges soared by 95%, achieving a total of £1.6 billion, influenced by increased financial expenditures.
- The organization reduced its workforce by 500 employees and now maintains a staff of approximately 7,300 individuals across various regions.
- Selfridges’ UK stores alone saw a rise in losses to nearly £42 million, impacted by declining property values.
In an unexpected turn of events, Selfridges’ financial filings revealed a substantial rise in pre-tax losses, climbing to £340 million for the year ending 3 February, up from £126 million the year before. This occurs in the context of an impressive 95% sales increase, bringing the total to £1.6 billion. However, this growth comes alongside a burgeoning finance bill, largely due to interest on borrowings.
Selfridges is owned by the Cambridge Retail Group Holding, with backing from Central Group and Saudi Arabia’s Public Investment Fund. Over the past year, the company has undertaken a major restructuring effort, eliminating 500 positions. This reduction brings the total workforce to around 7,300 across Selfridges, Brown Thomas, Arnotts in Ireland, and De Bijenkorf in the Netherlands.
Despite these losses, the company noted a marked increase in store visits, recording an additional million shoppers compared to previous years. This boost in footfall offers some optimism amidst their financial concerns.
Further complicating the financial landscape, Selfridges’ property values saw a significant decline, with valuations dropping by more than £600 million. The Oxford Street flagship store in London, amongst others, contributed to this 20.6% decrease in property assets.
In the UK, Selfridges stores reported a rise in losses to nearly £42 million, up from £39.3 million the prior year. This financial strain is reflective of broader market trends and specific challenges faced by the retail sector, including property devaluations and increased operational costs.
Selfridges’ financial challenges highlight the complexities of balancing growth with economic pressures in the retail industry.
