Selfridges is considering opening new stores in other UK cities

Selfridges, whose flagship is in Oxford Street in central London, also made encouraging noises about its new shop in Manchester, opened last September, saying it was meeting expectations.

Chief Executive Vittorio Radice said if Manchester traded well over the coming year, the group would look at opening two more shops in other major UK cities, possibly Birmingham or Glasgow.

"We would be in a position to announce something, if Manchester does well, in January next year," he said.

The retailer opened its first store outside the capital last September in the north-western English city of Manchester.

Profits down

Selfridges, which demerged from retail group Sears last summer, reported pre-tax profits in the 12 months to the end of January 1999 of £13.9m ($22.5m), down from £15.3m in the previous year.

Ongoing sales were £307.1m, up 4.6% from last year's £293.6m.

The final dividend was 3.2p a share, making 4.8p in total, up 7% from last year.

Profits were hit by £5.1m ($8.25m) in exceptional costs relating to the demerger and reorganisation, plus £2.5m for opening the Manchester shop.

Sales at the main Oxford Street outlet were 13% up in the first eight weeks of the current year.

The upbeat current trading performance helped lift Selfridges shares, which stood 8p higher at 250p, up more than 3%.

Northern success

Chairman Alun Cathcart said the group was encouraged by the performance of the Manchester shop.

He said: "We are delighted that our first store outside Oxford Street is already meeting expectations within 20 weeks of opening."

Selfridges said the Oxford Street store had suffered a 3.5% sales decline in the first half, but sales were up by 2% in the second.

The retailer said the turnaround was due largely to refurbishment, which included the beauty hall on the ground floor, which saw a significant sales increase after its re-opening in November.