Harvey Nichols’ profit was almost halved in in the 2015-2016 fiscal year due to the costs and disruption caused by major refurbishment work at its Knightbridge store and investment in its digital channel.
In accounts filed at Companies House just before Christmas, the group which operates eight stores in the UK and Ireland, the OXO Bar, Brasserie and Restaurant in London, as well as seven international stores, show profits fell 49% to £3m. Revenue was up 1% at £194m.
“We have made a number of necessary investments this year – in our stores, digital channels and people — in order to continue the radical transformation of the brand that will enable us to adapt to changing customer preferences and achieve future growth at the bottom line,” said Harvey Nichols Group CEO Stacey Cartwright.
The ground floor of its Knightsbridge store has undergone a radical transformation this year, which at times has led to store entrances being closed. It now houses a new beauty destination offering a range of experiences from blow-outs to manicures from 8am to 10pm.
Just before Christmas is also unveiled its new accessories and jewellery department offering brands such as Valentino, Givenchy, Alexander McQueen and Mark Cross, as well as a range of experiences and services such as a concierge service and “Handbag Clinic”. Development work will now focus on the main structural work of the 18th Century building.
The company said investment in its digital channel during the year had made it possible for it to deliver to more than 200 countries in 74 currencies. It has also introduced its Loyalty App in the summer of 2015 which offers rewards such as cash vouchers and dining, travel and beauty experiences.