Harrods sees record sales growth and Qatari owners cash in

Harrods, the luxury department store in Knightsbridge, reported a significant increase in turnover, reaching £898.4 million for the year ending in February, marking an 8% growth and a record high for the retailer. This growth occurred despite challenges faced by competitors like John Lewis and Harvey Nichols, which have struggled with changing shopping habits and consumer budget pressures in the luxury sector. Operating profits also saw a slight rise, increasing from £158.4 million to £162.9 million. The store's ownership, held by the Qatar Investment Authority since 2010, has benefited from this financial success, with the Qatari owners receiving a £180 million dividend for the second consecutive year. This substantial payout reflects the strong performance of Harrods amidst a competitive retail environment. The increase in sales has allowed the company to expand its workforce significantly, adding over 700 employees, bringing the total to 4,550 by the end of the reporting period. Additionally, the financial reports indicated that the highest-paid director, believed to be managing director Michael Ward, received a salary of £2.1 million, a decrease from the previous year's £2.3 million. This adjustment in compensation may reflect the broader economic conditions affecting the luxury market, as retailers adapt to shifting consumer preferences and economic pressures. Overall, Harrods' impressive sales growth and profitability highlight its resilience in the luxury retail sector, showcasing its ability to thrive even as other department stores face difficulties. The strategic decisions made by its management and the backing of its Qatari owners have positioned Harrods for continued success in the future.