Selfridges expected to show rise in profits

Department store group Selfridges is expected to reveal this week that the London terror attacks of July last year failed to dent its profits.

The privately-owned four-store business will also announce plans for a major £10m (€14.7m) refurbishment of the ground floor of its flagship site in London.

The Sunday Telegraph said results due to be filed at Companies House in the next few days will show that trading profits rose by 14% to £49m (€72.3m) over the year to January 31, 2006. Sales increased by 2% to £538m (€794m).

Paul Kelly, Selfridges’ chief executive, said the solid figures for 2005 were more pleasing because they included the period of the London terror attacks, when many tourists were put off coming to the capital.

He said he had been “overwhelmed” by customers’ resilience in the immediate wake of July 7, before a second scare kept people away until Christmas.

Today’s newspaper report said that Selfridges’ store in Birmingham saw double-digit sales growth over the year, while the retailer’s two Manchester outlets faced tougher trading conditions.

Sales in the current financial year are growing by double digits, which Mr Kelly said had been achieved by a refusal to cut prices.

He said: “It is about selling more good products at full price and not discounting.”