Investment in multichannel helped Selfridges [irdx rsel] deliver record profits in its latest financial year.
The company this week announced operating profits of £150m, up by 12.3% on the same time last year, while gross sales grew by 10.4% to £1.2bn. All the company’s retail channels grew during the year, with online seeing fast expansion following the launch of international delivery in 2013. Today Selfridges delivers to customers in more than 60 countries, including China.
“Selfridges UK has delivered another year of strong progress driven by continuous innovation and investment in our multichannel strategy and retail environment,” said Paul Kelly, managing director, Selfridges Group.
“Despite challenging trading conditions in 2014, we are accelerating our investment in multichannel and continuing our £300m redevelopment programme of our Oxford Street store.”
Selfridges Group chairman Galen Weston said investment would continue in the future. “Our vision is to lead luxury shopping experiences for our customers around the world, and we will continue to invest to achieve this goal,” he said.
Investment in the last year has included spending £50m on capital projects including the introduction of click and collect as well as the international expansion of selfridges.com. In October, the company said it would invest £40m to futureproof its multichannel business model.
Anne Pitcher, managing director, Selfridges, said: “Throughout 2013 and 2014 we have focused on providing an extraordinary experience for our customers in stores and online. Christmas 2014 is of course our crucial trading period and we have a fantastic product offer and an exciting campaign to ensure Selfridges will be the destination for Christmas.
Commenting on the results, Darryl Adie, managing director of ecommerce agency Ampersand Commerce [irdx vamc], said: “Optimising the fulfilment process has become a key differentiator this year and retailers such as Selfridges who are offering multiple delivery options are best placed for success. By offering click and collect and international delivery, Selfridges has added clear value to customers which has helped to drive sales, increase return on investment and foster customer loyalty.”