Selfridges have seen a 1.9% drop in operating profits in its full year results, as investment takes its toll on margins.

The department store revealed that its profits dropped to £1.52 million in the 12 months to January 31st. However, the retailer reported a record rise in gross sales up 5% to £1.4 billion.

It has attributed the fall in profits to its £300 million investment into its London flagship and online stores, stating that the project is already two years in progress and has taken an “unprecedented level of investment.”

This will mark the tenth consecutive year of record sales for the department store which welcomes over 2 million shoppers into its stores and online every year.

These strong results come amongst tough times for high street retailers. Footfall has declined by 0.9% on the past year and the number of shops has decreased by 1.2%.