What: Business turnover declined 51% to GBP 429.5 million (USD 585.9 million) for the year ending January 30, 2021. Harrods also reported a GBP 57.3 million loss, compared with a GBP 191.4 million profit the year previous.

Why it is important: Even as lockdowns have eased, challenges still remain. International travel is yet to return to pre-pandemic levels, a blow for Harrods, which depended heavily on high-spending oversees shopper’s pre-pandemic, in particular visiting Chinese consumers.

Meanwhile, a government decision earlier this year to abolish VAT-free shopping for international visitors — an important incentive for wealthy tourists to spend big — will likely have longer term implications, the retailer said in the filing.

Nevertheless, Harrods is optimistic about the year ahead, already seeing a huge return to demand for luxury. It also plans to forge ahead with new H beauty store openings across the UK, while also investing in strengthening its presence in the crucial China market. In June, the retailer debuted a second outpost in the region for its private shopping service, called The Residence.

Lockdowns hit Harrods’ bottom line