Harrods has reported record sales of £654 million as wealthy shoppers return to the luxury department store in force. The figure marks a significant rebound for the iconic Knightsbridge retailer, driven by strong demand from international visitors and high-net-worth individuals.
The sales surge comes amid a broader boom for luxury goods companies, which have posted bumper profits despite the global economic crisis. LVMH, the world's largest luxury group, reported a 19% jump in third-quarter sales, while Kering saw a 14% increase. Hermès also beat expectations with a 24% sales rise, and Burberry reported an 11% increase in the three months to September.
Wealthy shoppers from the Middle East and Asia have been particularly active. Saudi visitors Arwa Alhudhayei and Najla Ahmed, shopping on New Bond Street, said they spent heavily at Harrods because 'we like anything with the Harrods name on it, like specialty tea, chocolate and biscuits'. Arwa had already spent over £2,000 the previous day and bought a £500 Hermès scarf.
The luxury sector's resilience contrasts with the struggles faced by ordinary Britons, who are experiencing the biggest slump in living standards since records began in the 1950s. However, for the world's richest, the post-pandemic period has brought a 'roaring 20s' age of decadence, with champagne makers like Moët Hennessy reporting stock shortages due to pent-up demand.
Burberry has set a target of achieving annual sales of £5bn, up from £2.8bn in the year to April 2022. Chief executive Jonathan Akeroyd said revenue would hit £4bn in three to five years, adding: 'I really believe we can go further than this.' The company is spending millions redeveloping its flagship store on Bond Street.
