Selfridges has recorded a slump in full-year profits after investing heavily into revamping its Oxford Street store.
The high street retailer said operating profits for the financial year ending January 31 declined 1.9% to £152mn. However, the department store reported a 5% rise in sales to £1.4bn.
It has attributed the fall in profits to a £300mn investment into its London flagship and omnichannel capabilities, stating that the project is already two years in progress and has taken an “unprecedented level of investment.”
As part of the revamp, Selfridges launched the 37,000ft2 Body Study on April 4, revealing a ground-breaking retail concept showcasing women’s bodywear categories within the single largest space ever opened by the retailer.
The transformation, which also includes the launch of a new Accessories Hall, is set to be completed by spring 2018.
Selfridges managing director Anne Pitcher said: “We are delighted with our performance in 2015/16, in what was a challenging market. Our strategy of investing in continual innovation in our stores and across our omnichannel offer will ensure customers can shop with us even more seamlessly than ever before.”