Selfridges has continued to defy High Street woes by posting record sales growth of 11.5 per cent to more than £1.75 billion.

The department store, which continues to prove the strength of the luxury market, despite a decline in bricks and mortar retail, attributed the jump in sales to a £300 million revamp of its flagship Oxford Street store.

Operating earnings rose by £1 million to £181 million in the year to 3 February, the retailer’s strongest earnings to date, the Times newspaper reported.

Selfridges recently completed a major refurbishment of its grade II listed Oxford Street store, including a re-design of its beauty and accessories hall, while remaining open for trading.

Responding to the results, Anne Pitcher, the Selfridge’s managing director, told the Times she was “absolutely convinced” that there was still a place for great luxury department stores despite the disruption in the industry.

“If you can create a sense of fun and the unexpected that inspires people to keep coming to your stores, it is a powerful recipe,” she said.

Pitcher also attributed the store’s strong performance to rising visitor numbers and “record growth” in its digital business.

Continuing the growth story for luxury retailers, Harrods posted pre-tax earnings rise of nine per cent to nearly £216 million on sales of more than £2 billion.

A recent report by consultancy McKinsey & Co found that online sales of personal luxury goods currently account for eight per cent of the total luxury market, but predicted that by 2020, this will grow to 20 per cent – with these sales being driven primary online.

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