LONDON — Selfridges is feeling the impact from the end of tax-free shopping in Britain.
The luxury department store saw revenue decline by 7 percent in the 48 weeks to Jan. 4, to 775 million pounds. In the 53 weeks of its previous year, Selfridges reported revenue of 835 million pounds.
The financial statement was drawn up from Feb. 4, 2024 to Jan. 4, 2025. Last year, Selfridges changed its financial year end to within seven days of Dec. 31.
Selfridges said that the losses were a result of “disruption to some supply chains due to worldwide conflicts and 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 impacting customer confidence.”
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The scrapping of VAT-free shopping for international tourists in 2021 has impacted many businesses, including Burberry and Mulberry. Tourists are now swapping shopping in London for Paris and Milan.
As reported, the Association of International Retail, or AIR, has become the latest retail body to persist in pressuring the government for the reinstatement of tax-free shopping.
AIR believes that reinstating tax-free shopping would bring 3.7 billion pounds to the economy annually and make Britain “the global shopping capital.”
Selfridges, which has three outposts in London, Birmingham and Manchester, is still pushing through.
The department store revealed that its store had strong performance for the financial year 2024 with 1.2 million visitors.
The Oxford Street store refurbished its beauty hall and launched Selfridges Unlocked, a membership programme that focuses on rewarding customers for their time and money spent at the department store.
In Birmingham, Selfridges is planning another beauty hall, which will reach completion in November with 37 new counters and a dedicated fragrance space.
The retailer is putting all of its efforts into store activations.
Selfridges is set to open 40 Duke in spring 2026, its latest venture into the members clubs space. The opening will take place at the Oxford Street Store with a private terrace and dining room, which was approved by the Westminster City Council.
