Harrods, the iconic luxury department store in Knightsbridge, London, has been a symbol of British retail excellence since 1849. The store’s rich history includes several ownership changes throughout its existence.
Harrods is currently owned by the Qatar Investment Authority. They purchased the famous department store for £1.5 billion in 2010 from Mohamed Al-Fayed.
Before the Qatari ownership, Harrods was most notably owned by Mohamed Al-Fayed, who acquired the store in 1985. Al-Fayed’s ownership brought both prestige and controversy to the Grade II listed luxury department store. Unfortunately, recent years have brought serious allegations against the late Al-Fayed, with the current Harrods management expressing they are “dreadfully sorry” for abuse that occurred under previous ownership.
Key Takeaways
- Harrods is owned by Qatar’s sovereign wealth fund, which purchased the store in 2010 for £1.5 billion.
- The luxury department store has had five different owners since opening in 1849, with Mohamed Al-Fayed being one of its most famous proprietors.
- Despite ownership changes, Harrods remains one of the world’s most prestigious retail destinations, maintaining its heritage while evolving with modern luxury retail.
History of Ownership
Harrods, one of the world’s most famous luxury department stores, has changed hands several times throughout its long history. Each owner has left their mark on this iconic retail institution.
Early Beginnings and Ownership Changes
Harrods began as a small grocery store founded by Charles Henry Harrod in 1834. The store later relocated to Knightsbridge in 1849, establishing the location that would become world-famous.
The business expanded rapidly in the late 1800s, adding many new departments and growing beyond its humble grocery store origins.
A significant change came in 1959 when House of Fraser purchased Harrods, bringing the luxury department store into a larger retail group. This ownership would last for several decades, though not without controversy.
During this time, Harrods continued to build its reputation as a premier shopping destination for the elite and tourists alike.
Mohamed Al-Fayed Era
In 1985, Egyptian businessman Mohamed Al-Fayed bought Harrods, returning the store to private ownership. The purchase was reportedly worth £615 million.
Al-Fayed became a colorful and sometimes controversial figure in British society. During his ownership, he continued to position Harrods as the ultimate luxury shopping destination.
In 1994, Al-Fayed bought out his brother Saleh’s interest in Harrods for £100 million, consolidating his control over the business.
Under Al-Fayed’s leadership, Harrods maintained its reputation for luxury while expanding its global recognition.
Current Ownership
After 25 years of ownership, Mohamed Al-Fayed sold Harrods to Qatar Holdings in 2010 for an impressive £1.5 billion.
Qatar Holdings is the investment arm of the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar. This purchase represented their commitment to acquiring prestigious global brands.
Under Qatari ownership, Harrods has undergone significant renovations and modernization while maintaining its historic character and reputation for luxury.
The store continues to thrive as a global shopping destination and remains one of London’s most visited attractions, blending its rich history with contemporary luxury retail experiences.
Notable Events Under Mohamed Al-Fayed
Mohamed Al-Fayed’s ownership of Harrods was marked by ambitious expansions, high-profile investments, and later overshadowed by serious allegations. His tenure transformed the luxury department store while creating both positive innovations and controversial headlines.
Purchase of the Ritz Hotel
In 1979, Mohamed Al-Fayed made a spectacular business move by purchasing the iconic Ritz Hotel in Paris. This acquisition happened before he bought Harrods and demonstrated his interest in luxury properties and hospitality.
The Ritz purchase established Al-Fayed as a serious player in the high-end retail and hospitality world. He maintained the hotel’s historic charm while modernizing its facilities.
The hotel became a favorite destination for celebrities and royalty, further cementing Al-Fayed’s connections to elite social circles. His ownership of both Harrods and the Ritz created a powerful luxury brand portfolio that appealed to wealthy international clientele.
Significant Renovations and Investments
After acquiring Harrods in 1985, Al-Fayed poured millions into renovating the store. He added the famous Egyptian Hall and escalator, reflecting his Egyptian heritage.
He expanded the store’s food halls and introduced new luxury departments. The Egyptian-themed decorations became distinctive features that tourists specifically visited to see.
Al-Fayed created the popular Harrods memorabilia line, including the iconic green shopping bags that became status symbols. He also established the Harrods Bank and other financial services within the store.
In 2010, Al-Fayed sold Harrods to Qatar Investment Authority for £1.5 billion, ending his 25-year ownership of the landmark department store.
Controversial Allegations and Publicity
Al-Fayed’s later years at Harrods were marred by serious accusations. Recent investigations have revealed dozens of women accused him of sexual assault during his time as owner.
Reports indicate a culture of fear existed at Harrods that protected Al-Fayed. According to one woman, the head of security allegedly threatened her when she tried to speak out about misconduct.
The scandal has widened to include his brothers Salah and Ali, with all three Fayed brothers now accused of misconduct. These allegations have seriously damaged the family’s legacy.
Al-Fayed was also known for his persistent claims about a conspiracy behind the death of his son Dodi and Princess Diana in 1997, which kept him in the headlines for years.
Harrods in Popular Culture
The famous London department store has captured imaginations worldwide, appearing in countless movies, TV shows, books, and artworks. Its iconic green bags and distinctive building have become symbols of luxury recognized globally.
Movies and Television
Harrods has made several notable appearances in films and television shows. In the 1979 comedy “The London Connection,” the store’s famous Food Hall became a chase scene location. The 2003 romantic comedy “Love Actually” featured Harrods during a memorable shopping sequence.
The store appeared in “St. Trinian’s” (2007), where characters shopped in its lavish departments. Television shows like “Absolutely Fabulous” referenced Harrods as a symbol of luxury.
A BBC documentary also investigated serious allegations against former owner Mohamed Al Fayed, revealing a troubling side to the store’s history that contrasted with its glamorous public image.
Literature and Art
In literature, Harrods features in P.G. Wodehouse’s Jeeves stories as a shopping destination for the wealthy. The department store also appears in Michael Bond’s “Paddington Bear” series, with the famous bear visiting the Food Hall.
Contemporary artists have been inspired by Harrods’ distinctive architecture. British artist Patrick Hughes created a three-dimensional painting of the store’s facade in his “reverspective” style.
Fashion photographers often use Harrods as a backdrop for magazine editorials. The store’s Christmas windows are particularly celebrated in visual arts and photography, with their elaborate designs documented in books about London’s retail history.
The building’s unique Egyptian escalator and art deco features have inspired designers and architects worldwide.
Business Model and Strategies
Harrods operates with a distinctive business approach that blends luxury retail with exceptional service. The Knightsbridge department store has evolved its strategy to maintain its position as one of the world’s most famous luxury shopping destinations.
Luxury Brand Partnerships
Harrods has built its reputation through strategic partnerships with premium fashion houses and luxury brands. The department store carefully selects which brands to showcase, ensuring they align with its upscale image and customer expectations.
These partnerships help Harrods stand out from other retailers. Top fashion houses often create exclusive collections specifically for Harrods shoppers that can’t be found elsewhere.
The store dedicates special areas for brand boutiques, creating mini-stores within the larger department store. This layout gives luxury partners visibility while maintaining Harrods’ cohesive shopping environment.
Brand partnerships extend beyond fashion into beauty, home goods, and even food products, allowing Harrods to offer an extensive range of luxury items under one roof.
Customer Experience Focus
Harrods places exceptional customer experience at the heart of its business model. The store trains staff extensively in customer service techniques and product knowledge to deliver personalized shopping assistance.
The department store has also developed a booming restaurant business as part of its strategy. Food and beverage offerings have become major revenue drivers and cornerstone experiences for visitors.
Digital innovation plays a key role in enhancing customer experiences. Harrods integrates technology into its operations to create seamless shopping journeys both in-store and online.
The store offers exclusive services like personal shopping, delivery, and custom orders. These services make customers feel valued and create memorable shopping experiences that encourage loyalty and repeat visits.
Corporate Social Responsibility
Harrods shows commitment to making a positive impact through environmental initiatives, community programs, and charitable partnerships. The company demonstrates its values through a comprehensive approach to social responsibility.
Environmental Sustainability
Harrods has implemented various eco-friendly practices throughout its operations. The luxury retailer works to reduce its environmental footprint through energy conservation, waste reduction, and sustainable sourcing.
In its ESG Report, Harrods outlines its efforts to combat climate change and promote responsible resource management. This includes using more efficient lighting systems in its iconic Knightsbridge store and reducing single-use plastics in packaging.
The company also encourages sustainable fashion and partners with brands that follow ethical manufacturing practices. This helps protect vulnerable communities in global supply chains from becoming victims of exploitative labor practices.
Harrods regularly reviews its sustainability goals and shares progress with customers and stakeholders to maintain transparency.
Community Engagement
Harrods actively participates in local initiatives to support the communities where it operates. The retailer partners with neighborhood organizations to address social issues and improve quality of life.
Their corporate responsibility program includes employee volunteer opportunities that allow staff to contribute their time and skills to worthy causes. This builds stronger connections with local communities while fostering team spirit among employees.
The store also hosts community events and workshops that promote education and skill development. These programs often focus on helping disadvantaged groups gain access to opportunities in retail and hospitality industries.
Harrods uses its platform to highlight community success stories and inspire others to get involved in local initiatives.
Support for Social Causes
Harrods maintains several charitable partnerships to address important social issues. The company’s charity partnerships strategy is managed by their Corporate Social Responsibility team. This team identifies causes aligned with company values.
The retailer sponsors fundraising events and provides direct financial support to organizations working with victims of domestic violence, homelessness, and other societal challenges. Their support extends to educational programs that help break cycles of poverty.
Harrods also uses its influence to raise awareness about pressing social issues. Through in-store displays and online campaigns, they highlight causes that need attention and encourage customer involvement.
The company’s foundation makes grants to nonprofits working on long-term solutions to complex social problems. This shows Harrods’ commitment to sustainable change beyond immediate charitable giving.
Controversies and Criticism
Harrods has faced significant public scrutiny over the years related to its ownership. The luxury department store’s reputation has been impacted by legal battles and serious allegations against its former owner.
Legal Challenges
The Qatar Investment Authority’s purchase of Harrods for £1.5 billion in 2010 raised concerns and red flags at the time. The transition from Mohamed Al Fayed’s ownership to the Gulf state of Qatar brought its own set of legal complexities.
Disputes over business practices and employment policies have also emerged over the years. The store has faced various claims related to worker treatment and compensation practices.
These legal challenges have sometimes overshadowed the store’s prestigious reputation as a Grade II listed luxury department store in Knightsbridge, London.
Ethical Debates and Allegations
The most serious controversies surrounding Harrods involve former owner Mohamed Al Fayed. Dozens of women have come forward with allegations that Al Fayed was a “monster” who committed sexual assault. Lawyers in Britain now represent these women in their claims.
The Guardian has described Al Fayed’s life as “gilded” but “full of controversy”. He acquired prestigious assets but was frequently involved in disputes and fights.
The scandal has had ripple effects throughout Harrods’ business connections. In one example, a veteran Harrods executive dropped plans to head another company amid the growing controversy surrounding Al Fayed’s alleged misconduct.
The Harrods Experience
Visiting Harrods offers more than just shopping—it’s an immersion into luxury and tradition. The iconic Grade II listed department store in Knightsbridge delivers experiences that can’t be found elsewhere in London.
Iconic Departments and Services
The Harrods Food Halls remain among the most famous sections, offering gourmet delicacies from around the world. Visitors can sample exclusive treats while admiring the ornate tiled walls and ceiling decorations that date back to the early 1900s.
The Egyptian Escalator provides a dramatic entrance to the upper floors, with its ornate gold decorations and hieroglyphics. This stunning feature pays homage to the store’s Egyptian connections.
Harrods is home to nearly 300 departments and 20 restaurants. The Personal Shopping service offers customers individual attention with dedicated stylists in luxurious private suites.
The famous green Harrods bags have become symbols of luxury shopping in London. Many tourists purchase small items just to own the iconic bag.
Signature Events and Exhibitions
The annual Harrods Christmas Grotto attracts families from across the UK and internationally. Children meet Father Christmas in an elaborately decorated setting. The theme of the grotto changes each year.
The store’s Christmas window displays are legendary. Often, it takes months to design and install them. These artistic showcases draw crowds who come specifically to see the festive creativity.
Fashion shows hosted at Harrods feature elite designers and exclusive collections. These events combine the store’s retail expertise with theatrical presentations that dazzle attendees.
Seasonal food festivals bring celebrity chefs and unique culinary experiences to the Food Halls. Visitors can participate in tastings, demonstrations, and meet the creators behind luxury food brands.
