Department stores Harrods and Fenwick have shown signs of financial recovery, while rival Harvey Nichols battles for survival. Results reveal progress for Harrods and Fenwick, but Harvey Nichols faces potential closure within a year.
Harrods posted profits of £94.9million for the 12 months to the end of January, recovering after making a £34.3million loss a year earlier. That previous loss came after the company paid compensation to more than 100 victims of abuse by former owner Mohamed Al-Fayed.
While the department store is back in the black, it is still feeling the effects of the tourist tax, which stops foreign shoppers reclaiming VAT. Finance chief Geoff Weaver said, "Harrods remains cautiously optimistic."
Fenwick reduces annual losses
Fenwick said it reduced annual losses from £35million to £22million last year. Sales at the retailer rose 2.5 per cent over the year to January 31.
The UK's largest family-owned department store has seen signs of progress following collaborations with brands including Greggs and Barbour.
Harvey Nichols seeks buyer
Harvey Nichols warned this week that it will close within a year if a buyer or fresh cash is not found. The chain's future was still in doubt last night as it struggles with ongoing losses.
Entrepreneur Mike Ashley's retail group Frasers worked on a deal to buy the loss-making chain.
