It’s been a bumper of a year for Harrods.
The British department store saw its pre-tax profits rise by a whopping $167.2 million (£131.3 million) in the 12 months ending January 2023, Women’s Wear Daily reported on Wednesday. It also experienced a 52 percent increase in turnover, up to $1.3 billion (£994.1 million).
“2022 was a year of recovery and growth as we, like many others, continued to emerge from the impact of the Covid-19 pandemic,” Harrods CFO Tim Parker told WWD. “At the beginning of 2022, with many international travel restrictions still in place, there was a subdued return of the global tourism trade that is so important to the U.K.”
The London landmark, owned by the Qatar Investment Authority, even saw its numbers exceed pre-pandemic figures. Gross transaction value was up 51.1 percent compared with 2019, and it grew by $909.5 million (£714.1 million). That was in part thanks to Harrods’ focus on luxury houses like Dior and Louis Vuitton. In November, Dior took over the Knightsbridge icon with an epic gingerbread display in honor of the Christmas holiday. Forty-four windows were devoted to the French label, as were a café and two pop-ups.
That collaboration paid off: Industry sources told WWD that “the Fabulous World of Dior” resulted in more than $31.8 million (£25 million) in sales and made Dior the top brand at the department store. Harrods wouldn’t confirm those numbers, but it said that Dior was a “top performer” in 2022. On the heels of that partnership, Dior returned this summer with another takeover, including three distinct spaces within the 174-year-old building and an overlay of its facade.
Similarly, Louis Vuitton worked with Harrods on a massive installation earlier this year. The French house had 27 windows and a massive Yayoi Kusama statue that stood as tall as the third floor.
Looking forward, Harrods is planning to continue this emphasis on luxury: “We remain focused on driving future growth via the curation of exclusive products and experiences that can only be found in Harrods, further enhancements in 2023 including new womenswear and furniture rooms as well as the ongoing development of our dining offerings and expansion of our private shopping services,” Parker said.
That strategy does seem to be working for them.