Harrods owner Mohammed al Fayed has awarded himself a £600,000 pay-rise, it has emerged, after the Knightsbridge-based department store posted record sales for the last 12 months.

Al Fayed will earn £2.4m from the group this year, according to figures released by Harrods Holdings.

The news comes with sales at Harrods having hit a new high of £690m despite a slump in consumer confidence elsewhere on the high street.

Profits at the upmarket store also rose, climbing from last year’s figure of £24.4m to a new mark of £34.9m.

Al Fayed and his family will also benefit from a £30m dividend due to the group’s performance.