Pay-out almost doubles as Harrods' profit rises
Harrods owner Mohamed Al Fayed and his family received a£72 million dividend payment after pre-tax profits at the Knightsbridge store jumped 17 per cent to£22.3 million.

The retailer reported record sales figures of£513.5 million for the year to January, compared with£492.3 million the previous year. Harrods has also invested tens of millions in revamping the store and turnover rose 2 per cent to£352 million.

Al Fayed said: 'We continue to reap the benefits from our ongoing investment and improved product offer across all divisions.' The rise in profits came despite the disruption caused by last year's July terrorist attacks in London.

His upbeat outlook was in contrast to speculation that some retailers are enduring tough trading in the run-up to Christmas.

A Harrods spokesman said that sales had been boosted by investments in refurbishing departments and the popularity of a new personal shopping service, By Appointment.

Al Fayed's dividend compares to last year's£39 million and could anger staff who threatened to strike after a decision to close the final salary pension scheme last March.

The Knightsbridge department store was valued at£690 million in September last year by Cushman & Wakefield.

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