What: Selfridges cut its workforce from over 3,200 in 2020 to about 2,800, mostly at head office, as operating profit rose 88% to £79.7m on flat sales.

Why it is important: Selfridges' profit rebound comes from cutting costs at head office, where buying, windows and events are decided, which tests how far a luxury department store can trim the teams behind its differentiation, as Harvey Nichols and Printemps make similar cuts.

Selfridges reports a pre-tax profit of £13m for the first time since 2019, against a £15.9m loss a year earlier, with operating profit up 88% to £79.7m. Management points to sales growth of 7% to £830.8m, but the previous financial year covered only 48 weeks, against 52 this time. Sales have in fact been flat over three years, at £843.7m, £834.9m and £830.8m, while international tourists are staying away from the London flagship.

The improvement comes from better margins and tight cost control rather than new space or major works across the 96,000 m² network. The cuts fall mainly on head office: 450 posts disappeared in 2020, a new redundancy consultation opened in 2023, and 70 posts were cut in 2024 and again in May 2026. Staff numbers have fallen from over 3,200 in 2020 to around 2,800. Stores are spared, according to the retailer.

Head office is where buying, windows and events are decided. Selfridges, named best department store in the world four times, built its reputation on surprise. Central Group and Signa paid £4bn for Selfridges in 2021; after the collapse of René Benko's empire, PIF took Signa's 40%, at an undisclosed price.

IADS Notes: Cost-cutting at the centre of a department store is a pattern seen elsewhere in the sector. Frasers Group's restructuring of Harvey Nichols after the 13 August takeover eliminates certain departments and brings significant redundancies (Drapers, September 2026), while Printemps plans 229 job cuts and the closure of its Rennes store, alongside new roles in digital and omnichannel skills (Fashion Network, April 2026). Ownership structure is the other pressure point: after the Signa insolvency, Central Group's acquisition of KaDeWe in June 2024 removed the rent burden that had undermined its profitability and allowed a refocus on a landmark premium destination (Modaes, May 2026). London's luxury department stores also share a common exposure: Harrods returned to an £84.9m pre-tax profit while the group and its peers cited the absence of tax-free shopping and higher National Insurance costs (Fashion Network, August 2026). Around them, the pedestrianisation of Oxford Street between Selfridges and Ikea arrives as flagship demand shifts toward large experiential formats, with footfall still below pre-pandemic levels (Financial Times, October 2026).

Selfridges returns to profit by cutting costs while sales stay flat