What: London's luxury department store Harrods sees 8% revenue growth, highlighting recovery in high-end retail.

Why it is important: It signals the resurgence of luxury retail and tourism in London, potentially influencing global luxury market trends.

Harrods, the iconic Knightsbridge luxury department store, reported a record turnover of £898.4 million for the 53 weeks ending February 3, 2024, an 8% increase from the previous year's £831.6 million. This growth coincides with the return of foreign shoppers following the lifting of pandemic-era travel restrictions. Operating profits also saw a modest rise from £158.4 million to £162.9 million.

The store's performance marks a strong recovery from the pandemic-induced setbacks, which included two long lockdowns in 2020 and 2021. While the current turnover is a record for the store itself, it's worth noting that the broader Harrods group of companies recorded over £1 billion in sales immediately before the pandemic.

Harrods' management, including long-standing managing director Michael Ward, has been vocal about the impact of ending VAT-free shopping for overseas tourists. Ward argues that this "tourist tax" has disproportionately benefited competing destinations like Paris, affecting not just luxury goods sales but also related sectors such as hospitality and general tourism spending.

Harrods turnover surges to almost £900 million