Fortnum & Mason to ‘limit price rises’ as it battles surging costs
Iconic London store Fortnum & Mason has vowed to limit increasing prices in the wake of tax rises by the Labour government.
The retailer, which can trace its roots back to 1707, has said the outlook for its operating costs in 2025 “remains challenging”.
The company pointed to inflation, labour costs, tax increases, raw materials, legislation and geopolitical instability as all contributing factors.
However, Fortnum & Mason added that it is “keen to limit passing on cost increases to customers through prices as much as possible and instead tackle the issues through further growth and increased productivity”.
The comments come as the business revealed its financial performance for the year to 14 July, 2024, as well as its Christmas trading.
During its latest financial year Fortnum & Mason increased its turnover from £208.6m to £227.8m, while its pre-tax profit also grew from £7.5m to £9.3m.
The company, which is owned by the Weston family’s Wittington Investments, also issued a dividend of £2.6m.
The retailer did not pay out a dividend in its prior financial year.
As well as its full-year results, Fortnum & Mason has also revealed its Christmas trading results.
In the five-week period to 24 December, 2024, in-store sales rose by 10 per cent on a like-for-like basis while total sales rose by two per cent.
Online sales were seven per cent lower than the prior year as the company “controlled demand in our new warehouse”.
‘I am incredibly proud of our staff and customers’
Tom Athron, CEO of Fortnum & Mason, said: “Although the economic climate has not been without its challenges, I am incredibly proud of our staff and customers who have helped deliver another year of strong growth for Fortnum & Mason.
“It is such a thrill to see how the investments we have made to our in-store experience, as well as the investments made to our online shopping experience in the UK, EU and beyond, have had a tangible and positive impact on the business, not just at Christmas but all year round.
“During the coming year, we will continue to invest in all parts of the business. The installation of a double helix staircase in our flagship Piccadilly store and the launch of our first ever membership scheme for our customers will continue to ensure we provide unique, in-store experiences.
“We will also continue to make investments and implement new technologies across all elements of our business to ensure our customers receive the level of service they have come to expect from Fortnum’s.
“As we look ahead to 2025, I am extremely excited by the possibilities it presents.
“As one of Britain’s most recognisable brands with total focus on extraordinary food and drink, and with the strong foundations we have in place driving forward our business, I am confident we will continue to innovate and inspire, create unique in- store experiences, and bring more moments of joy into more peoples’ lives.”
Fortnum & Mason chair ‘delighted’ with London store footfall increase
Kate Hobhouse, chair of Fortnum & Mason, added: “I am hugely proud of our annual results for 2023-2024 in what has been a challenging economic climate.
“I am so grateful to our incredible staff and suppliers who have worked tirelessly this year as always to deliver such impressive results.
“It’s wonderful to see the increased footfall in our Piccadilly flagship and other stores, which highlights the uniqueness of the Fortnum’s experience for our customers, not just at Christmas, but throughout the year.
“I was particularly delighted that we were granted two new Royal Warrants this year from His Majesty The King and Her Majesty The Queen.
“These recognised our support for the country’s rural and farming communities, and also continued the proud association we have had with the Royal Family for over 300 years.”