Harrods delays summer sale citing supply chain woes

HARRODS has been forced to delay the start of its summer sale by two weeks after supply chain troubles slowed down the delivery of its new season of luxury goods.

Michael Ward, managing director of the Knightsbridge department store, said its supply chain was running “two to three weeks behind where it should be”.

He told Bloomberg: “A good example of that is we’ve just delayed the summer sale for two weeks because I need another 10pc of new-season stock to allow me to function into the new year.”

The setback highlights how even high-end retailers are not immune to recent supply troubles, which have been exacerbated by the war in Ukraine and China’s zero-covid policy.

Harrods is also grappling with a labour shortage that has plagued the wider retail and hospitality industry, as well as airlines. Mr Ward said: “It’s almost impossible to find the right staff. We’ve lost significant amounts of people as a result of Brexit.

“And it’s not the skilled or qualified, it’s the people we need to do jobs that unfortunately the British will not do.”

Despite challenges, the luxury goods sector has remained resilient in the face of surging inflation and a cost of living crisis that has piled pressure on the budgets of many British families.

Continued demand for luxury goods is being driven by customers from the Middle East and the US, as well as British shoppers.

Mr Ward said the price of a Chanel 2.55 handbag has gone up by an average of 11.75pc each year for the past 25 years.

He added: “If you were lucky enough at the moment to buy a Rolex Ceramic Daytona, we are selling it for £10,000

‘We’ve delayed because I need another 10pc of newseason stock to allow me to function into the new year’

and you’d be able to instantly sell it for £30,000.”

Healthy sales at Harrods mirror a rebound in the wider luxury goods market, with brands including Burberry and Cartier-owner Richemont reporting a surge in sales as countries began to emerge from the pandemic.

A report from consultancy Bain, published earlier this week, forecast that global sales of luxury goods will rise at least 5pc this year as shoppers in the US and Europe continue to buy watches, jewellery and shoes despite the wider economic uncertainty.