Luxury retailer Selfridges said the end of tax-free shopping in the UK and weaker consumer confidence were significant factors in its annual sales decline.
The business saw revenues drop 7% to £775m for the 48 weeks to 4 January, from the £835m seen in the 53 weeks of its previous year. as it recorded losses for the fifth consecutive year.
The business also attributed its performance to “disruption to some supply chains due to worldwide conflicts and shipping route delays, inflation and exchange rate fluctuations, price increases across luxury brands, alongside higher costs of living, high energy costs and other economic conditions impacting customer confidence”.
A Selfridges spokesman said: “We are pleased to report strong performance for the financial year 2024 at Selfridges, with an additional 1.2 million visitors to our stores.
“We completed the refurbishment of our Oxford Street beauty hall, enhanced our Selfridges Unlocked membership programme and delivered many extraordinary experiences for our customers.
“This year, we are trading in line with expectations with footfall up again. We have big and exciting plans for the upcoming festive period, which promises to be our most magical Christmas yet.”
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Although losses narrowed to almost £16m from nearly £42m the year prior, the business has failed to make a pre-tax profit since 2019.
Selfridges said it was suffering from the scrapping of tax-free shopping for tourists, and that revenues last year had been hit by increases in the price of luxury items as shoppers grappled with cost of living pressures.
Earlier this year, Selfridges unveiled plans to launch its first members club at its Oxford Street flagship next year.
The company filed a planning application to launch 40 Duke, which it described as “an exclusive new shopping and social destination for its most valued customers and members”.
In February, the group also expanded its membership scheme to reward shoppers for time spent at its destinations and events.
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