Fashion

Harvey Nichols Sees Profits Grow, Following Knightsbridge Store Revamp

LONDON — Harvey Nichols is seeing its revenues grow, as the storewide refurbishment of its Knightsbridge flagship starts to take shape.

In the financial year ending March 2018, revenues were up 9 percent to 210 million pounds, compared with 194 million pounds last year.

Earnings before interest, tax, depreciation and amortization were up 102 percent, to 14.7 million pounds, compared with 7.3 million pounds last year, when the store’s ongoing overhaul ate into the retailer’s bottom line.

“Our ambitious Knightsbridge store refurbishment plans have had a positive impact,” said Manju Malhotra and Daniela Rinaldi, the group’s joint chief operating officers. “However, the retail environment remains challenging and competitive. With this uncertain outlook, we are focused for the remainder of this year on continuing to drive sales and delivering an omnichannel experience for our customers.”

In the last two years, the store unveiled revamped men’s, beauty, fine jewelry, accessories and women’s wear departments, introducing more modern, sleek interiors and a boutique-life feel.

“The difference between us and the other main department stores is our size. We’re small, and so we wanted to play on that more and make it our strength rather than be apologetic with smaller spaces,” said Hazel Catterall, head of women’s wear buying, at the time of the women’s floor opening.

Enhancing its digital presence, is another focus for the retailer.

Last March, it inked a deal with Farfetch to allow customers to shop the Harvey Nichols edit online and introduce services such as in-store returns and same-day deliveries.

The retailer has also recently introduced a live shopping platform, with retail technology company Hero, that enables customers to connect with staff via real-time messaging and photo-sharing on the app, to place orders and make inquiries about in-store stock.