Fortnum & Mason vows to limit price rises despite 'challenging' outlook for London store

Iconic London retailer, Fortnum & Mason, has pledged to limit price increases in response to tax hikes by the Labour government. The company, which dates back to 1707, acknowledged that its operating costs for 2025 present a "remains challenging" outlook.

Factors such as inflation, labour costs, tax increases, raw materials, legislation and geopolitical instability were all cited as contributing factors, as reported by City AM.

However, Fortnum & Mason emphasised its commitment to "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".

This statement was made as the company disclosed its financial performance for the year ending 14 July, 2024, along with its Christmas trading figures. Over the past financial year, Fortnum & Mason saw its turnover rise from £208.6m to £227.8m, while pre-tax profit also increased from £7.5m to £9.3m.

The Weston family-owned company, under Wittington Investments, also issued a dividend of £2.6m, having not paid out a dividend in the previous financial year. In addition to its full-year results, Fortnum & Mason also shared its Christmas trading results.

In the five weeks leading up to 24 December, 2024, in-store sales rose by 10 per cent on a like-for-like basis, while total sales increased by two per cent. Online sales were seven per cent lower than the previous year as the company "controlled demand in our new warehouse."

Tom Athron, CEO of Fortnum & Mason, expressed his pride in the company's performance amidst economic challenges: "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."

He highlighted the success of investments made across the business: "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."

Athron outlined plans for continued investment in the iconic brand: "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."

He also mentioned the focus on technology and customer service: "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."

Looking forward, Athron shared his enthusiasm for the future: "As we look ahead to 2025, I am extremely excited by the possibilities it presents."

He concluded with confidence in the brand's direction: "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."

Kate Hobhouse, Chair of Fortnum & Mason, has expressed her satisfaction with the luxury retailer's performance, stating: "I am hugely proud of our annual results for 2023-2024 in what has been a challenging economic climate."

She continued: "I am so grateful to our incredible staff and suppliers who have worked tirelessly this year as always to deliver such impressive results."

Highlighting customer engagement, she added: "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."

Moreover, Hobhouse remarked on the Royal recognition received by the brand: "I was particularly delighted that we were granted two new Royal Warrants this year from His Majesty The King and Her Majesty The Queen."