What: It seems that luxury food is thriving in London.

Why it is important: Gourmet halls are increasingly important for department stores, and many should get inspired by what is going on at F&M since the arrival of their new CEO, Tim Athron

Fortnum & Mason, the iconic London department store known for its luxury goods and specialty teas and jams, is set to expand following a particularly busy Christmas season. The 317-year-old retailer experienced a 17% increase in sales and processed over 400,000 orders in the five weeks leading up to Christmas Eve, with orders coming from as far as Bermuda and New Zealand. This surge in demand put significant pressure on its infrastructure.

To address these challenges, Fortnum & Mason has decided to relocate its main UK warehouse to Corby in Northamptonshire, which offers twice the space of the current facility. However, this expansion comes with a downside, as smaller warehouses across the UK will be closed, and 94 jobs are under consultation.

Despite these changes, Fortnum & Mason is not struggling. Since CEO Tim Athron took over in 2020, the store has been working to broaden its appeal beyond its traditional elite customer base. This strategy appears to be successful, as indicated by a 12% increase in annual sales in the year to July 2023. The flagship store in Piccadilly now features a creative hub for food and drink, a test kitchen, and a gin distillery. Additionally, there are discussions about opening a store in the US, although this has not been confirmed.

Fortnum & Mason is expanding and considers entering the US