Harrods given a £200m makeover

Harrods is close to unveiling the first phase of a £200 million overhaul ordered by its new Qatari owners, The Evening Standard reports. 

They hope the refurbishment will shake off the remnants of the vast department store’s “Grace Brothers” legacy from the Seventies and Eighties and resecure its reputation with wealthy shoppers from all over the world.

A spectacular new escalator is the centrepiece of the development, linking all seven floors of the Knightsbridge institution, and this will be officially opened on November 4.

Several major departments, including the former Way In younger fashion floor and the jewellery and gifts sections, have been revamped by leading designers and a new watch department has been created.

A vast new shoe department on the fifth floor — claimed to be the biggest of its kind in Europe — was one of the last projects of revered interior designer David Collins who died in July and this will be opened next August.

The Knightsbridge institution’s new owners — the Qatari royal family’s sovereign fund Qatar Holding — have dramatically raised their planned budget for upgrading the 1.2 million sq ft store since they bought it from Mohamed Fayed for £1.5 billion in May 2010.

At the time, they said they merely wanted to “ upgrade the monument”. But accounts show the capital expenditure budget leaped from £20 million to £30 million a year during the Fayed years to more than £50 million a year under the new ownership. Exact figures are not released but it is thought that about £210 million has already been spent since the takeover.

In addition, concession holders are investing about £25 million a year, making it likely that nearly £300 million has been lavished on modernising, upgrading and repairing the interiors and exteriors of the grade II*-listed building.

In his 25-year stewardship of Harrods, Mr Fayed spent around £400 million on the store, a figure likely to be dwarfed by the Qataris.
The listed building status meant that Harrods executives had to consult English Heritage on almost every aspect of the restoration, down to the width of the glazing bars in a new skylight.

Martin Illingworth, Harrods director of store development, said: “Old buildings like this need to have a lot of spending. It is effectively a heritage site and a lot has to be spent to maintain it. We couldn’t close the store to the refurbishment work, so it is a bit of a juggling act.

“We wanted to take the old features and bring them back to life, but with all the newness as well — that’s a wonderful combination. English Heritage wants to see old buildings brought back to life and used properly, otherwise they start decaying.”