Luxury department store chain Selfridges has recorded its fifth consecutive year of sales declines, as a slump in international tourists and the scrapping of tax-free shopping hit its bottom line.
Sales at the Central Group-owned business sank 7% to £775m for the year ended 4 January 2025, down from £835m seen one year prior, according to documents filed with Companies House in the UK.
Trading was impacted by a reduced number of international visitors in the UK and shopping in Selfridges’ stores, along with the loss of tax-free shopping.
The tax-free purchasing scheme for international visitors ended on 1 January 2021, after the UK Government scrapped its VAT Retail Export Scheme (RES).
Selfridges also reported disruptions to certain supply chains due to worldwide conflicts, as well as shipping route delays, inflation and exchange rate fluctuations.
Price increases across luxury brands, alongside higher costs of living, high energy costs and other economic conditions, have also “impacted customer confidence”, according to the business.
Losses narrowed to £16m during the year, however, down from the losses of £42m recorded in 2023.
Alongside the mixed financial performance, Selfridges has also unveiled plans for an expanded beauty destination at its Birmingham store.
The 30,000sqft space has been dubbed the UK’s “biggest beauty hall outside of London” and will feature new services and 37 beauty counters.
The Birmingham renovation will be launched in two phases, increasing the retail space dedicated to beauty by 20%.
As of 2 October, Beauty Workshop has opened, which offers Selfridges’ curation of skin, hair and body care products, as well as colour cosmetics.
In November, the Beauty Hall will be fully completed, with the opening of a flagship fragrance space exclusive to Birmingham.
“For more than 20 years, Selfridges has been at the very heart of Birmingham’s beauty community,” said Sam Watson, Selfridges Store Director, Birmingham.
“This renovation broadens our beauty offer with even more exciting and exclusive brands, innovative experiences and the very best team, here to offer inspiration, solutions and expertise.
“By increasing the space dedicated to beauty in Birmingham, our customers now have even more reasons to spend time with us in store, with new products and services to discover every time they visit.”
Selfridges was fully acquired by Thai multinational conglomerate Central Group in 2023.
This followed Signa Group, which had co-owned Selfridges alongside Central Group, revealing that its financial difficulties had deepened.
In 2024, Selfridges CEO Andrew Keith exited the role after nearly four years of service.
Newly appointed Selfridges Group CEO André Maeder, who joined the business in May 2024, has taken over his responsibilities in the UK.