×
81 696
Fashion Jobs
ESTÉE LAUDER
Keyholder - The Cosmetics Company Store - 20 Hrs - Leesburg Corner Premium Outlets - Leesburg,va
Permanent · Leesburg
ESTÉE LAUDER
Senior Financial Analyst, Finance North America, Mac
Permanent · New York
ESTÉE LAUDER
Director, HR Business Partner, na
Permanent · New York
MICHAEL KORS RETAIL INC
ft Sales Supervisor - Aventura, fl
Permanent · West Palm Beach
ABERCROMBIE AND FITCH CO.
Director, Digital Product Management (Remote)
Permanent · Columbus
BANANA REPUBLIC
General Manager - Woodbury
Permanent · Woodbury
BANANA REPUBLIC
General Manager - Norfolk Premium
Permanent · Norfolk
AIIR PROFESSIONAL
Brand & Digital Manager
Permanent · SCOTTSDALE
L'OREAL GROUP
Asst Mgr/Mgr - Brand Business Development & Sales Analytics
Permanent · New York
MACY'S
Manager, Asset Protection
Permanent · Roseville
MACY'S
Asset Protection Detective, State Street - Full Time
Permanent · Chicago
MACY'S
Asset Protection Security Guard, San Francisco Union Square - Full Time
Permanent · San Francisco
MACY'S
Asset Protection Officer, Bailey Road - Part Time (3840)
Permanent · North Jackson
MACY'S
Asset Protection Officer, Secaucus - Part Time (3840)
Permanent · Secaucus
MACY'S
Asset Protection Detective, Green Acres - Full Time
Permanent · Valley Stream
MACY'S
Asset Protection Officer, West Virginia - Full Time (2840)
Permanent · Martinsburg
MACY'S
Asset Protection Hourly Supervisor, West Virginia - Full Time (2840)
Permanent · Martinsburg
MACY'S
Asset Protection Officer, Secaucus st fj - Part Time (2840)
Permanent · Secaucus
MACY'S
Asset Protection Detective, Mall at Robinson Town Center - Full Time
Permanent · Pittsburgh
MACY'S
Asset Protection Security Guard, Newpark - Part Time
Permanent · Newark
MACY'S
Asset Protection Officer, Hayward - Part Time (3840)
Permanent · Hayward
MACY'S
Asset Protection Officer, Portland - Part Time (2841)
Permanent · Portland
Published
Nov 3, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Harrods transaction values halved in pandemic, retailer swung to loss

Published
Nov 3, 2021

Luxury department store Harrods has filed its accounts for the year to the end of January 2021 and they show just how big an impact closed borders and lockdowns had on its business.


Photo: Public domain



The company – which is usually a tourist magnet as foreign visitors and those from the UK descend on London – said that its gross transaction value including VAT just about halved. It fell to £1.097 billion from £2.201 billion in the previous year. And turnover dropped to £429.5 million from £870.8 million. 

That meant the business generated a post-tax loss of £57.3 million after posting a profit of £191.4 million in the previous year. The operating loss for the period was £66.4 million, down from a previous profit of £203.3 million.

The company had been investing heavily in the store but the pandemic period saw a reduction in capital expenditure to only £44.7 million from £114.1 million previously.

Harrods said that the pandemic was a "significant challenge" for the business with the Knightsbridge store closed during three lockdowns in the 12-month period. Its online channel saw year-on-year growth in line with what the rest of the retail industry was experiencing (it didn’t specify a percentage), but that couldn't make up for the closure of its massive Knightsbridge store. 

Even after the reopening following lockdowns, Harrods was particularly hampered compared to many other retailers by the fact that inbound tourism was still a tiny fraction of what it had been pre-pandemic, and given its dependence on high-spending international tourists, that was a problem.

But the retailer said that it continued to stand by suppliers by continuing to pay punctually and in line with its agreements in order to ensure a strong supplier relationships throughout the pandemic and beyond. And its focus has been on ensuring that it reopened in as strong a position as possible to ensure a successful business in the long term.

The retailer added that in the long term, changes to the tax-free shopping rules that came into effect on January 1 this year could have a big impact, although it's not possible currently to quantify the impact given that international travel still hasn't returned to pre-Covid levels.

But it's already seeing the impact of Brexit with additional importing costs in duty and admin of around half a million pounds. This only relates to imports for which Harrods is directly responsible and it also said that it will incur higher costs eventually through increased prices from suppliers.

But even with all that taken into account, the company said it has considerable financial resources together with long-term contracts with a number of suppliers and it believes it's well placed to manage its business successfully in future.

Copyright © 2022 FashionNetwork.com All rights reserved.