Harrods which is the biggest department store in Europe has paid out £118 million dividend to its Qatari owners.
The company has made record sales of £794 million in the year end, which is up from £716 million the previous year. Further to that, accounts show Harrods has grown turnover by 10% to £843 million in the year to February, with pre tax profits up 24% to £115 million. The Harrods group also incudes airport stores, property businesses and the exclusive Harrods Bank. They also make great profit from selling branded merchandise to overseas department stores.
“Focus has continued on investing in luxury boutiques primarily in our Knightsbridge store but also at the airports. This level of capital expenditure is expected to continue in 2014.” The company said.
In 2010 Mohamed Al Fayed sold Harrods, for an estimated £1.5 billion to the current owners. In between that time, Qatar Holding has invested millions into the store. New chandeliers and escalators installations have been carried out, ‘Shoe Heaven’ was created within the store which is the world’s largest collection of luxury shoes, as well as a complete refurbishment of the grand hall entrance. The group also spent £1.4 million repairing the historic terracotta façade on its Knightsbridge store,
The department store, which is an iconic landmark, draws in tourists from all over the world. Reports show the store attracts more than 15 million visitors every year. Harrods was founded in 1849 by Charles Henry Harrod, occupies an astonishing five acres.
The increase in Harrods sales show there is still a lot of potential within the luxury market, which critics have previously questioned the future of.
Harrods said the biggest risk to the company was “events impacting the level of international travel to the UK, including terrorism and natural disasters”.
The shop’s motto is Omnia Omnibus Ubique, which means All Things for All People Everywhere.