Upmarket grocer Fortnum & Mason swung back into profit last year as its sales recovered from the effects of trading restrictions and lockdowns during the pandemic.
Figures for the year to 10 July 2022 show the retailer’s turnover jumped 42% to £187m despite facing supply chain disruption, reduced labour availability, and inflationary pressures.
The business moved back in profit, at £6.1m for the period (compared to a £2.7m loss the previous year), as shoppers returned to physical stores. Fortnum & Mason noted that its UK stores had recovered to 2019 levels, buoyed in particular by international customers.
However, its online business still represented 39% of total sales, up 160% on pre-pandemic levels.
Kate Hobhouse, Chairman of Fortnum & Mason, said: “I am incredibly proud of our annual results for 2021-2022, and am delighted to be seeing all our hard work pay off amidst a tough economic climate.”
Over the more recent Christmas trading period covering the five weeks to 25 December, Fortnum & Mason’s all-channel sales increased 8% from last year and up 29% from 2019. The group noted that over 4.6 million customers were served across all its sites, up 48% from pre-pandemic levels.
The business said it saw a marked revival in physical retail and hospitality. Overall sales through stores were at the heart of this growth (up 35% year-on-year), with its flagship store on Piccadilly seeing sales jump 32%. However, £1 in every £2 spent at Fortnum’s was spent online over the Christmas period, up from £1 in £3 before the pandemic.
Tom Athron, CEO of Fortnum & Mason, commented: “Although there is growing uncertainty over the economic and consumer spending outlook, at Fortnum & Mason we have plenty of exciting plans to ensure that we can continue to bring moments of joy into people’s lives throughout 2023.
“Early Spring sees the launch of our new Food & Drink studio on the Third Floor at Piccadilly, which will be an innovative space for food production, education and events. We will also be launching our extraordinary Coronation range so we can join the nation in celebrating His Majesty King Charles III. I’m also excited to welcome back our international customers as the world continues to open up. We have a large and ambitious agenda, and I’m excited by the opportunities that 2023 offers our business to continue growing and improving our customer experience both in store and online.”
NAM Implications:
- Obviously suppliers need to check they achieved their fair share of sales and investment…
- …and claim appropriate credit for F&M return to profitability.
- Also worth checking out possible opportunities in the new Food & Drink studio…
- …and Coronation launches.
