Selfridges has already opened stores outside London

The company has already made big profits by opening stores in Birmingham and Manchester.

Now it wants to tempt shoppers in Newcastle with a multi-million pound development in the city.

The company says negotiations are "well advanced" to build a store in Newcastle.

By the end of 2003, Selfridges expects to have 46% of its trading space outside London.

On top of economic and political uncertainty, the London store has also faced problems with the closure of the nearby Central tube line.

It has also emerged that insurance cover for property damage and business interruption are set to rise by �600,000 from �1.9m. That figure rose �1.5m following the 11 September terrorist attacks on the United States.

Selfridges chairman Alun Cathcart added: "Our London store is proving resilient, and the benefits of our multi-site strategy are evident in our record results."