Fortnum & Mason’s back is lifted by biscuit lovers

Fortnum & Mason has regained profitability after two years of losses.

The historic British department store and grocer reported an operating profit of £6.1m on sales of £187m when its year ended on 10 July 2022.

This represents a significant turnaround from the £2.7m loss the luxury food store recorded in its previous annual trading statement.

Sales of biscuits with festive Christmas orange, dark chocolate and pistachio helped to increase by 30% year-over-year. Other festive favorites include mince pies, advent calendars, and dark chocolate.

Tom Athron, Chief Executive Officer Fortnum & MasonHe also said that the success of the company was due to the reopenings of its restaurants and stores. Fortnum & Mason’s online business is proprietary, he stated.

Fortnum’s online sales accounted for 40% of its sales, increasing to 50% over the Christmas period.

The company plans to increase its sales even more by selling products online to EU members for the first time since Brexit.

Despite a £6m profit, the luxury retailer also warned of the challenge to trading from inflated costs and wages, low turnout and staff shortages.

Athrun added, “We are seeing input prices for our raw materials and therefore cost of goods sold going up. We have seen the same pressures on wage inflation, staff shortages, attrition and all that remains of every other business.”

He acknowledges that there has been “growing uncertainty” about consumer spending in 2023. But, he believes King Charles III’s coronation will be a boon. The retailer has long-standing ties to the royal family.

William Fortnum, a footman for Queen Anne’s household and Hugh Mason, established the iconic store in 1707.