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Harrods and fishing - a thread
For the benefit of @christopherhope who was correct on the telly today
and Paul Stains - @GuidoFawkes - who wasn't
tl:dr Harrods is worth more to the UK economy than fishing....
... has been for a few years.
... now not even close
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For the benefit of @christopherhope who was correct on the telly today
and Paul Stains - @GuidoFawkes - who wasn't
tl:dr Harrods is worth more to the UK economy than fishing....
... has been for a few years.
... now not even close
1/
This first arose when I calculated the fact and stated clearly the underlying rationale in a 2018 column and a tweet
https://twitter.com/ChrisGiles_/status/1009684599876866048?s=20
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https://twitter.com/ChrisGiles_/status/1009684599876866048?s=20
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Having been true but forgotton, it came up today and then Paul Stains started to pretend it was false, and then, when I demonstrated it wasn't, to suggest my facts were mere "conjecture"
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He doesn't understand economics and clearly cannot read company accounts, but I can.
So I will take @GuidoFawkes though this in meticulous detail. Politely
1. You need to understand how economic is measured. It is based on the concept of value added
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So I will take @GuidoFawkes though this in meticulous detail. Politely
1. You need to understand how economic is measured. It is based on the concept of value added
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This is the value a business or sector adds - conceptually this is the equivalent of the wage bill plus operating profits (using the income measure of GDP)
For fishing - this is very easy as the @ons publish low level aggregates
Here is the latest: https://www.ons.gov.uk/economy/grossdomesticproductgdp/datasets/ukgdpolowlevelaggregates
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For fishing - this is very easy as the @ons publish low level aggregates
Here is the latest: https://www.ons.gov.uk/economy/grossdomesticproductgdp/datasets/ukgdpolowlevelaggregates
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Let's look inside the spreadsheet and you need to find what the code for fishing is: Look at the 03
Then you look at the current price gross value added - here is the most recent data
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Then you look at the current price gross value added - here is the most recent data
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So, you can see from the data that in the year to Q1 2020, the fishing and aquaculture sector of the economy was worth £437m to the UK economy
Remember that number because now we have to look at Harrods accounts from Companies House …https://find-and-update.company-information.service.gov.uk/company/01889348/filing-history
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Remember that number because now we have to look at Harrods accounts from Companies House …https://find-and-update.company-information.service.gov.uk/company/01889348/filing-history
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You have to understand what sort of business Harrods is. It is a retailer but also does other stuff and has concessions in store
The turnover of the business was £1,040m in the same period, and total sales in Harrods stores (with concessions) excluding VAT was £2,018m
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The turnover of the business was £1,040m in the same period, and total sales in Harrods stores (with concessions) excluding VAT was £2,018m
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Lets take the Harrods own brand retailing part first (The £1,040 turnover). Clearly that is not value added - it's turnover.
So go to the profit and loss account for the operating profit - its £257m - that is value added
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So go to the profit and loss account for the operating profit - its £257m - that is value added
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Now we need to add the wage bill, because that is also value added. For that we need to find note 8 in the accounts - total staff costs are £180m
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The numerate among us will note that
£257m + £180m = £437m
And I could stop there £437m > £436m
But that would be a bit close - so you then need to think about the other sales in Harrods not part of group's turnover
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£257m + £180m = £437m
And I could stop there £437m > £436m
But that would be a bit close - so you then need to think about the other sales in Harrods not part of group's turnover
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These will be things like concessions that operate inside Harrods but staff are employed by others - look jobs are advertised and easily found with a google search
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This will all be on top of the £437m as will the operating profits made by these operations.
We can't know how much exactly, but there was £437m value added in Harrods turnover, so it will be a few hundred million
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We can't know how much exactly, but there was £437m value added in Harrods turnover, so it will be a few hundred million
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So, that's how I originally researched the facts (and, of course, spoke to Harrods to check my understanding).
And so Paul @GuidoFawkes, it wasn't "wrong" or "conjecture", but careful research
I can explain what that is again in silly detail, if you wish...
ENDS
And so Paul @GuidoFawkes, it wasn't "wrong" or "conjecture", but careful research
I can explain what that is again in silly detail, if you wish...
ENDS
