Harrods

History

In 1824, at the age of 25, Charles Henry Harrod established a business at 228 Borough High Street in Southwark. He ran this business, variously listed as a draper, mercer, and a haberdasher, until 1831 at least. During 1825, the business was listed as 'Harrod and Wicking, Linen Drapers, Retail', but this partnership was dissolved at the end of that year. His first grocery business appears to be as ‘Harrod & Co.Grocers’ at 163 Upper Whitecross Street, Clerkenwell, E.C.1., in 1832.

In 1834 in London's East End, he established a wholesale grocery in Stepney, at 4, Cable Street, with a special interest in tea. In 1849, to escape the vice of the inner city and to capitalise on trade to the Great Exhibition of 1851 in nearby Hyde Park, Harrod took over a small shop in the district of Brompton, on the site of the current store. Beginning in a single room employing two assistants and a messenger boy, Harrod's son Charles Digby Harrod built the business into a thriving retail operation selling medicines, perfumes, stationery, fruits and vegetables. Harrods rapidly expanded, acquired the adjoining buildings, and employed one hundred people by 1880.

However, the store's booming fortunes were reversed in early December 1883, when it burnt to the ground. Remarkably, in view of this calamity, Charles Harrod fulfilled all of his commitments to his customers to make Christmas deliveries that year—and made a record profit in the process. In short order, a new building was built on the same site, and soon Harrods extended credit for the first time to its best customers, among them Oscar Wilde, Lillie Langtry, Ellen Terry, Charlie Chaplin, Noël Coward, Gertrude Lawrence, Laurence Olivier and Vivien Leigh, Sigmund Freud, A. A. Milne, and many members of the British Royal Family.

A chance meeting in London with businessman, Edgar Cohen, eventually led to Charles Harrod selling his interest in the store for £120,000 via a stock market floatation in 1889. The new company was called Harrod’s Stores Limited. Sir Alfred James Newton became chairman and Richard Burbidge managing director. Financier William Mendel was appointed to the board in 1891 and he raised funding for many of the business expansion plans. Richard Burbidge was succeed in 1917 by his son Woodman Burbidge and he in turn by his son Richard in 1935.

On Wednesday, 16 November 1898, Harrods debuted England's first "moving staircase" (escalator) in their Brompton Road stores; the device was actually a woven leather conveyor belt-like unit with a mahogany and "silver plate-glass" balustrade. Nervous customers were offered brandy at the top to revive them after their 'ordeal'.

The department store was purchased by the Fayed brothers in 1985.

Qatar Holdings ownership

Following denial that it was for sale, Harrods was sold to Qatar Holdings, the sovereign wealth fund of the State of Qatar in May 2010. A fortnight previously, chairman of Harrods since 1985, Mohamed Al-Fayed, had stated that "People approach us from Kuwait, Saudi Arabia, Qatar. Fair enough. But I put two fingers up to them. It is not for sale. This is not Marks and Spencer or Sainsbury's. It is a special place that gives people pleasure. There is only one Mecca."

The sale was concluded in the early hours of 8 May, when Qatari Prime Minister Hamad bin Jassim bin Jaber Al Thani came to London to finalise the deal, saying that the acquisition of Harrods would add "much value" to the investment portfolio of Qatar Holdings while his deputy, Hussain Ali Al-Abdulla, called it a "landmark transaction". A spokesman for Mohamed Al-Fayed said "in reaching the decision to retire, [Fayed] wished to ensure that the legacy and traditions that he has built up in Harrods would be continued." Harrods was sold for £1.5 billion; half of the sale will be used to pay bank debts of £625 million.

Al-Fayed later revealed in an interview that he decided to sell Harrods following the difficulty in getting his dividend approved by the trustee of the Harrods pension fund. Al-Fayed said "I'm here every day, I can't take my profit because I have to take a permission of those bloody idiots...I say is this right? Is this logic? Somebody like me? I run a business and I need to take the trustee's permission to take my profit." Al-Fayed was appointed honorary chairman of Harrods, a position he will hold for at least six months.

With the previously operating Disney Cafe and Disney Store, the Disney at Harrods partnership added the Bibbidi Bobbidi Boutique salon on November 25, 2013 to those stores.

Significant event timeline

Products and services

The shop's 330 departments offer a wide range of products and services. Products on offer include clothing for women, men, children and infants, electronics, jewellery, sporting gear, bridal trousseau, pets and pet accessories, toys, food and drink, health and beauty items, packaged gifts, stationery, housewares, home appliances, furniture, and much more.

A representative sample of shop services includes 32 restaurants, serving everything from high tea to tapas to pub food to haute cuisine; a personal shopping-assistance programme known as "By Appointment"; a watch repair service; a tailor; a dispensing pharmacy; a beauty spa and salon; a barbers shop; Harrods Financial Services; Harrods Bank; Ella Jade Bathroom Planning and Design Service; private events planning and catering; food delivery; a wine steward; bespoke picnic hampers and gift boxes; bespoke cakes; bespoke fragrance formulations; and Bespoke Arcades machines.

Up to 300,000 customers visit the shop on peak days, comprising the highest proportion of customers from non-English speaking countries of any department store in London. More than five thousand staff from over fifty different countries work at Harrods.

As of 15 October 2009, Harrods Bank has started selling gold bars and coins that customers can buy "off the shelf". The gold products range from 1 g to 12.5 kg, and can be purchased within Harrods Bank. They also offer storage services, as well as the ability to sell back gold to Harrods in the future.

Royal warrants

Harrods was the holder of royal warrants from:

In August 2010, in a letter to the Daily Telegraph, chairman Mohamed Al-Fayed revealed that he had burnt Harrods royal warrants, after taking them down in 2000. Harrods had held the Royal warrants since 1910. Describing the warrants as a "curse", Al-Fayed claimed that business had tripled since their removal. The Duke of Edinburgh removed his warrant in January 2000, and the other warrants were removed from Harrods by Al-Fayed in December, pending their five-yearly review. The Duke of Edinburgh had been banned from Harrods by Al-Fayed. Film of the burning of the warrants in 2009 was shown in the final scene of Unlawful Killing, a film funded by Al-Fayed and directed by Keith Allen.

Memorials

Since the deaths of Diana, Princess of Wales, and Dodi Fayed, Mohamed Al-Fayed's son, two memorials commissioned by Al-Fayed have been erected inside Harrods to the couple. The first, located at the base of the Egyptian Escalator, was unveiled on 12 April 1998, consisting of photographs of the two behind a pyramid-shaped display that holds a wine glass smudged with lipstick from Diana's last dinner as well as what is described as an engagement ring Dodi purchased the day before they died.

The second memorial, unveiled in 2005 and located by the escalator at door three is entitled "Innocent Victims", a bronze statue of the two dancing on a beach beneath the wings of an albatross, a bird said to symbolise the "Holy Spirit". The sculpture was created by William Mitchell, a close friend of Al-Fayed and artistic design advisor to Harrods for 40 years. Al-Fayed said he wanted to keep the pair's "spirit alive" through the statue.

After the death of Michael Jackson, Al-Fayed announced that they had already been discussing plans to build a memorial statue. This was unveiled in April 2011 at the rear of Craven Cottage football ground (Fulham F.C.) but removed in September 2013 on the orders of new club owner Shahid Khan.

Dress code

From 1989, Harrods has had a dress code policy and has turned away several people who it believed were not dressed appropriately. These included a soldier in uniform, a Scout troop, a woman with a mohican hair cut, a 15 stone (95 kg) woman and FC Shakhtar Donetsk's first team for wearing tracksuits.

Size

The store occupies a 5-acre (20,000 m²) site and has over one million square feet (90,000 m²) of selling space in over 330 departments making it the biggest department store in Europe. The UK's second-biggest shop, Selfridges, Oxford Street, is a little over half the size with 540,000 square feet (50,000 m²) of selling space., By comparison Europe's second-largest department store the KaDeWe in Berlin has a retail space of 650,000 square feet (60,000 m²).

Criticism

Harrods and Mohamed Al-Fayed were criticised for selling real animal fur with regular protests organised outside Harrods. Harrods is the only department store in Britain that has continued to sell fur. Harrods was sharply criticised in 2004 by the Hindu community for marketing a line of feminine underwear (designed by Roberto Cavalli) which featured the images of Indian goddesses. The line was eventually withdrawn and formal apologies were made.

Harrods has been criticised by Guardian journalist Sali Hughes as "deeply sexist" for making female employees wear six kinds of makeup at all times without requiring this of male employees. They have also been criticised after reports came out claiming that Harrods staff told a black woman that she would not be employed unless she chemically straightened her hair, stating that her natural hair style was “unprofessional”.

Asma al-Assad, the wife of the President of Syria, Bashar al-Assad, used an alias to shop at Harrods despite economic sanctions imposed by the European Union that froze funds belonging to her and her husband.

In March 2014, a parody story in Middle East satirical website The Pan-Arabia Enquirer claimed that following a dispute among Gulf countries, Harrods' Qatari owners had banned shoppers from the United Arab Emirates, Bahrain and Saudi Arabia from entering the store. The article was reported as fact on a cover story in Pakistan's The News International.

Harrods' restaurant does not pass on service charges added to customers' bills to those who provide the service, unless they accept a cut in basic pay.

Crime

Due to its status and expensive nature of its merchandise, Harrods has been connected with several high-profile crimes over the years, including the 2012 theft of a £24,000 designer dress, part of what was referred to as a '£240,000 Harrods crime spree'.

Harrods Ltd v. Harrods Limousine Ltd

On 27 October 2008, Harrods Ltd applied to the Company Names Tribunal under s.69(1)(b) Companies Act 2006 for a change of name of Harrods Limousine Ltd, which had been registered at Companies House since 14 November 2007.

The application went un-defended by the respondent and the adjudicator ordered on 16 January 2009 that Harrods Limousine Ltd must change their name within one month. Additionally the respondent was ordered not to cause or permit any steps to be taken to register another company with an offending name which could interfere, due to its similarity, with the goodwill of the applicant.

Harrods Limousine Ltd was also ordered to pay Harrods' costs.