Upmarket department store Selfridges has defied the consumer gloom to post a 33% increase in profits to £65m.
The company, which owns two stores in Manchester and a site in Birmingham as well as its flagship base on Oxford Street in central London, saw sales rise to £597m for the year to January 31, 2007, an 11% increase on the previous 12 months.
The figures, due to be published soon, come as the retailer prepares to open its new £10m “Wonder Room” on the ground floor of the Oxford Street site. This latest addition to the store, a 19,000 sq ft luxury-gift department, is due to open tomorrow and includes a Tiffany concession. It will also offer large spaces devoted to Hermès, Chanel jewellery and watches, and cult brand Chrome Hearts.
The Wonder Room, which is the most expensive project in the store’s history, boasts a wine store and wine bar, and a concept store selling unusual gifts. Paul Kelly, Selfridges’ chief executive, said that all four stores were running profitably and that he was confident that the figures for this financial year would beat those from 2006-7.