LUXURY food and gifts retailer Fortnum & Mason has reported a surge in profits, buoyed by new outlets and demand for its hampers and caddies of loose-leaf tea.

The 307-year-old retailer, best known for its flagship store in Piccadilly, London, said pre-tax profits had more than doubled to £3.8m in the year to July, while sales jumped 14 per cent to £74.4m.

Fortnum opened its first new store in more than 300 years at St Pancras station in London last November. It followed that up this year with its first outlet outside the UK, in Dubai, albeit operated by a third party, and recently made its debut at Heathrow Terminal 5.

Fortnum, owned by the Weston family that controls Associated British Foods, said hamper sales had increased 18 per cent during the year and tea sales 13 per cent. Online sales increased 25 per cent.

The department store group makes the bulk of its profits over Christmas, and Venters was confident as it entered the key trading period: “We’re very excited about Christmas, naturally, and all the signs suggest we are going to have our best festive season on record too.”