Harvey Nichols set for further expansion

HARVEY NICHOLS, the upmarket department store group, shrugged off concerns over the impact of the strong pound and Far Eastern turmoil to report increased profits yesterday. The company said trade from Asian tourists at its flagship Knightsbridge store had been hit hard by exchange rate effects but that it only accounted for a small proportion of total sales.

Harvey Nichols is at an advanced stage of negotiations for a suitable site in either Edinburgh or Glasgow. The store will be the group's third after Knightsbridge and the Leeds store opened two years ago. A fourth will be sited in either Manchester or Newcastle. The company reported pre-tax profits of pounds 14.1m for the year to March compared to pounds 12.1m in 1997.