Luxury London retailer Fortnum & Mason enjoyed bumper sales for products such as champagne, truffles, caviar, tea and biscuits over the Christmas period, with the group posting more than 12% year-on-year growth in the five weeks to 31 December.
The group said that its flagship Piccadilly store achieved a 10% increase in sales in the period, with online sales also on the rise – online now accounts for 37% total sales at Christmas.
“We have always believed that quality products, exceptional service and an extraordinary retail environment is what makes us stand out," said Ewan Venters, CEO of Fortnum & Mason.
"In this day and age, it is more important than ever to be unique, and our exceptional Christmas results demonstrate that."
Analyst Viewpoint
Commenting on the retailer's performance, Kate Ormrod, lead retail analyst at GlobalData said, "Fortnum & Mason had no issue driving customer acquisition over the five weeks to the end of December 2018, both in terms of domestic consumers but also overseas shoppers, with the latter growing 16% on the year.
"Some 83% of sales in its flagship Piccadilly store in December were from domestic customers, up six percentage points on last year, proving it still holds plenty of appeal among UK shoppers, and remains a destination for gifting purchases. Though product is key, it is the experience and entertainment that a visit to one of Fortnum & Mason’s branches provides which drives footfall and spending."
Ormrod added that the retailer is "not immune" to festive shopping habits, despite its luxury status.
"The retailer must maintain its premium service credentials, so continued investment in this area is imperative as shoppers become more demanding," she said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
