// Harrods Michael Ward says he is confident the luxury department store would thrive in a recession
// The managing director said the “rich get richer” during an economic downturn as demand for superbrands soar
Harrods is trading ahead of 2019 levels as boss Michael Ward said he remained confident of its performance amid the economic downturn because “the rich get richer in a recession”.
The managing director told The Financial Times: “Statistically the rich get richer in a recession…whatever your political persuasion.”
The luxury department store returned to the black last year as it reported pre-tax profits climbed to £51m in the year to January 2022.
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He told the publication shoppers were increasingly purchasing goods from superbrands such as Louis Vuitton and Hermès.
“The constant trend is people going for more and more and more premium items,” he said.
“The rise of the superbrands is getting absolute, so that middle ground of the market is becoming tougher and tougher.”
This comes as the global luxury market is forecasted to grow at least 3% to 8% this year despite looming fears the UK could enter a recession.
In December, the managing director warned London was at risk of trailing behind Paris and Milan in luxury trade after the UK government scrapped tax-free shopping for tourists.
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