Recession hits Harvey Nichols
Upmarket department store chain Harvey Nichols has seen its profits slump 40 per cent as the global financial hits its wealthy customers, it was reported today.
Chief executive Joseph Wan said sales had suffered a sudden drop following the banking crash and went into "freefall" from October, stabilising after the winter sales.
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Harvey Nichols in Cabot Circus, Bristol
Harvey Nichols, which last September opened a store in Bristol's Cabot Circus, and also has UK stores in London, Leeds, Birmingham, Edinburgh, Dublin and Manchester, is now expected to make profits of £10 million in the year to March 31, down from £18 million the previous year.
"A lot of wealth has evaporated and cannot be replaced overnight," Mr Wan said.
"The total consumption pool has shrunk since last year. We must adapt."
He said group sales for the year were likely to have fallen around 5 per cent.
But Mr Wan expressed optimism that Harvey Nichols would be able to ride out the downturn.
"As long as we don't end up with a mountain of stock, survival should be no problem," he said.
Bristol financial analyst Mark Dampier of stockbrokers Hargreaves Lansdown said the figures were worrying.
He said: “A lot of us were surprised when Harvey Nichols opened in Bristol - can the city support it during a major recession?
“It was a key plank to get other high profile names to open in Cabot Circus but if anything happens to the store, it will clearly detract from going to Cabot Circus.
“I wonder if there are any high-net individuals in Bristol who can support the store at a time like this - spending £1,000 on a dress?”
The firm remains committed to store openings – including one in Kuwait – and discussions about a Nottingham branch are ongoing.
It is owned by the Hong Kong-based businessman Dickson Poon, whose retail empire also extends into North America and Europe.
18 Comments
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by david, bristol
Saturday, March 21 2009, 1:52PM
“I bet primark will do much better than all the other fancy store lets wait and see shall we”
by Gomem, East Bristol
Saturday, March 21 2009, 2:06AM
“It wasn't just the £95 t-shirt which got me about Harvey Nichols, it was the £1000+ leather jackets I seen in the menswear department. This is the Bentalls episode of a few short years ago all over again.
Did anyone else notice in Cabot Circus, that Hardy Amies closed it's doors within weeks of opening? Hardy Amies been another very upscale clothing store selling £500-£1000 suits, etc.
BTW I'm certainly looking forward to the new Primark shop opening in the ex-Bentalls/House of Fraser building.”
by Tony, Bristol
Friday, March 20 2009, 9:38PM
“Come on good Bristolians please wake up!
This is no surprise at all, in fact I predicted it some time ago, Bentalls got it wrong so have this firm.
They think we have money to waste on "labels" here is the proof we are not total fools.”
by Alex, Redcliffe
Friday, March 20 2009, 8:46PM
“Have to say I am not surprised they have lost money. Like Max said, why would you buy a £95 t-shirt? It is probably made from the same cotton all the cheaper ones are just with a different label. I don't mind paying a bit more for quality, but the expensive designers treat people like idiots and you are paying far more than the item is actually worth. Bit like the 1 bedroom apartments CC is trying to flog for £190k a pop.”
by Mike, Bristol
Friday, March 20 2009, 2:53PM
“I buy my black cherry jam in harvy nicks, its only £3.00”
by Loretta Gunn, BS22
Friday, March 20 2009, 2:12PM
“The recession has hit wealthy customers too!
We are all doomed!
They've got the rich!!
It's the poor that go first.”
by rubbish, bristol
Friday, March 20 2009, 2:08PM
“Have bought things from asda ,tesco, burton ,next ,john lewis ,harvey nicks ,house of frazer,and many more different shops ,doesnt mean i have to pay over the top prices yes some of these big named stores do charge big prices but its all to do with what you want at the time
and yes im not short of a bob or two but i still bye in the supermarkets”
by Captain Obvious, Obvious HQ
Friday, March 20 2009, 1:51PM
“£95 for a t-shirt is a little steep, I'd rather go in House of Fraser of John Anthony than Harvey Nicks.”
by Mike B, Bristol
Friday, March 20 2009, 1:48PM
“This article does NOT contradict the one about "Bristol's" Harvey Nicks a couple of days ago, as that was referring to the success of the Bristol outlet.
This article is referring to the profits (still vast) made by the Company Nationally, so despite the company income falling, it may well have been supported by the success of the Bristol Harvey Nicks . . ;-)
Not that I have even been through their door, mind you . . ;-)
I'm quick to correct the BEP if they have got something wrong, but in this case, it seems it's being misinterpreted by 'some' of the readers . . :D”
by Unrelated to Harvey, Bristol
Friday, March 20 2009, 1:41PM
“It's not all £95 t-shirts Nigel. There's lots of stuff there for only a little more than you'd pay in the shops you've mentioned. And you don't end up looking like your grandad (M&*) or a chav (B**tons). Take another look.”