Fortnum & Mason, London’s most celebrated store, today (Monday, 13 January) announces a significant rise in its full-year profits and reports an outstanding performance over the Christmas trading period.
The F & M annual results show that, for the year up to July 2013, sales were £65m, up 10 per cent on the previous year, and profit before tax was £1.8m, a five-fold increase on 2012.
In contrast to the market trend, Fortnum’s enjoyed a highly successful Christmas period. For the five weeks up to 5 January, 2014, sales were up 16 per cent. Like-for-like sales (i.e. excluding the new store at St Pancras) showed a 13.4 per cent increase. Remote sales rose by 24% and online revenue was 26.4% up. Sales at Fortnum’s landmark store in Piccadilly increased by 7.4 per cent.
Sales of Fortnum’s world-famous hampers were up by 15 per cent, providing the group with the best hamper sales in its 306-year history.
The results follow significant investment in the Piccadilly store during 2013, including the launch of a jewellery room, a new candle room, and improvements to enhance customer service. The store at St Pancras, opened in November 2013, had its first Christmas, and trading significantly exceeded expectations.
Ewan Venters, chief executive of Fortnum & Mason, said: “Christmas at Fortnum’s was one of the best yet, both in terms of sales and customer satisfaction. The demand for more bespoke luxurious items, together with the Christmas staples, is at an all-time high, suggesting that consumers still want to treat themselves during the festive period.”
“We continue to invest in the business to provide our customers with the best possible experience, both in our stores and online – another area of significant year on year growth.”
Record sales of Fortnum’s Christmas items include:
• Christmas biscuits UP 39%
• Mince pies UP 29%
• Christmas puddings UP 13%
There was a significant trend towards luxury items including:
• Truffles UP 133%
• Turkish Delight UP 42%
• Vintage Port UP 26%
• Hand carved wild salmon UP 18%
• Candles UP 41%
Following its impressive Christmas performance, Fortnum’s is looking forward to further progress in 2014 with the launch of its new stand-alone store in Dubai, and a further significant investment in its digital offering to improve customer experience, service and delivery.