Yahoo Finance Fortnum & Mason not hampered by Aldi's Christmas competition
Retailer known for its luxury hampers says sales are up 20%, despite discounter selling alternative for less than half the price
Fortnum & Mason has said sales of its monogrammed hampers have risen by 20% this Christmas despite fierce competition from a cheaper rival.
Last month, Aldi raised eyebrows with the launch of its “Exquisite” hampers filled with Christmas puddings, truffles and chocolates in mint green packaging, the colour the Fortnum’s brand is most associated with, and selling for less than £100.
Fortnum’s chief executive, Ewan Venters, said: “We’ve been selling hampers for almost 300 years and are the undisputed king of hampers. I would like to thank the board of Aldi for all they are doing to generate publicity for our hampers. Sales are up 20%.”
Fortnum’s hampers typically cost between £150 and £250, but it also sells a £6,000 version containing Beluga caviar, foie gras en croûte and Cristal champagne. Venters said the retailer had recorded an increase in overseas hamper orders this year as wealthy food-lovers cash in on the weak pound.
The company, founded in 1707 and best known for its flagship store in Piccadilly, central London, said an overall 17% increase in hamper sales had contributed to another record financial performance, with pre-tax profit up by 27% to £6.2m in the year to July.
Sales increased by 12% to £98.7m. Fortnum’s, which holds two royal warrants, is owned by the Weston family, which has a majority stake in Associated British Foods.
Venters said the retailer was anticipating a successful Christmas trading period, but there would be “no hiding” from food price inflation in the new year, with manufacturers seeking increases of between 5% and 10%. Fortnum’s deals with 1,000 UK suppliers and Venters said they had all been affected by the decrease in the value of sterling since the Brexit vote.
