Selfridges blames slump in tourists shopping for luxury goods as sales fall

"Selfridges has blamed a slump in the number of international tourists shopping for luxury goods in the UK and weaker consumer confidence for a fall in annual sales, as the retailer racked up losses for a fifth year in a row. The upmarket department store chain reported a 7% decline in sales in the 48 weeks to 4 January 2025 to 775m compared with 835m recorded over the 53 weeks of its previous year."

"The retailer said it was suffering from the impact of the axing of tax-free shopping for tourists, which it said had made the UK a less attractive destination for wealthy visitors looking for luxury handbags, clothing and watches. Retailers have previously said US or Asian shoppers are more likely to buy such items in European cities such as Paris and Milan rather than London since the tax changes."

Sales declined 7% to 775m in the 48 weeks to 4 January 2025, down from 835m over the prior 53-week period. Losses narrowed to nearly 16m from almost 42m the previous year, but no pre-tax profit has been reported since 2019. The group operates four UK stores—Oxford Street, two in Manchester and one in Birmingham—plus online operations. The removal of tax-free shopping reduced the UK's attractiveness to wealthy international shoppers, who increasingly buy luxury items in other European cities. Rising luxury prices, inflation and higher energy costs dampened consumer confidence and spending on non-essential goods. The London store remains a tourist attraction offering events, displays, dining and designer goods.

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