Fortnum & Mason has reported record full year profits after enjoying the busiest year in its 307-year history.
The upmarket food and gift retailer more than doubled its profits for the year to July 2014. Sales were £74.4 million (a 14% increase on 2013) and profit before tax was £3.8 million – more than double the £1.8 million achieved in the previous year.
Fortnum said its financial performance was driven by ‘excellent’ sales at the brand’s flagship Piccadilly store in London, and by its growth strategy that included the opening of two new sites.
In November 2013 Fortnum launched its second UK store in 307 years at London’s St Pancras International Station. This was followed by the opening of its first standalone store outside the UK in Dubai last March. Both stores offer an edit of Fortnum & Mason products, as well as all day dining options. And doors opened to its first standalone airport store, measuring 1,000sq ft, at Heathrow Terminal 5 last November.
The stores at Piccadilly, St Pancras and Dubai all delivered ‘stand out results’, both on the retail and hospitality sides. Across the board, hamper sales increased by 18% and tea sales were up 13% on the previous year. Online sales increased 25%.
Commenting on the results, Fortnum ceo Ewan Venters said: “We are thrilled with the figures. The last financial year was a landmark one for us and the new stores at St Pancras, and in Dubai, have both been big success stories. Piccadilly has gone from strength to strength too, and it’s all down to the management and wider staff teams. We have an exceptionally talented group driving the business forward. Looking to the future, we know we can’t afford to rest on our laurels. We’ll continue to invest in the business to provide our customers with the best possible experience, in-stores and online, and we’re all set to launch a number of extremely exciting initiatives in 2015 that will, hopefully, see us deliver another set of record breaking results next year.”