Harrods back in black as shoppers splash out again

Harrods turned a profit earlier this year as shoppers burst out again after the easing of pandemic restrictions.

The London store, which is owned by the Qatari government, posted a pre-tax profit of £51 million for the year to January 29, compared to a loss of £68.3 million in the same period a year ago, according to accounts filed. at Companies House.

The recovery came as the company’s turnover rose 36 percent to almost £582 million. Harrods director Michael Ward said sales this year were expected to hit £871 million, about the same as in the last full year before the pandemic hit.

Harrods had managed to attract more domestic shoppers through its new restaurants and hair salon, Ward told The Sunday Times, while strong demand from Middle Eastern shoppers had helped offset the sharp decline in spending by Chinese tourists.

He also stressed that the pound’s recent weakness would drive gains next year.

But Ward warned they were not expected to recover to pre-pandemic levels due to rising energy and personnel costs.