Harrods integrates fine jewellery and watches into flagship two-level hub
Bottom Line Impact
If executed with strong partner co-investment and disciplined phasing, the integrated hub can lift category revenue and margin mix while reinforcing Harrods' leadership as London’s destination for high-jewellery and haute horlogerie despite tax-free headwinds.
Key Facts
4- Harrods will fully remodel and integrate Fine Jewellery and Fine Watch rooms into one two-floor space connected by curved escalators, enabling double-storey boutiques.
- The project is part of a multi-year, multi-million pound transformation focused on elevating customer experience across the store.
- The new integrated format is designed to meet or surpass monobrand boutique standards seen on Bond Street, Place Vendome, and Dubai Mall.
- The redesign addresses current configuration challenges to streamline client journeys across high-ticket categories and consolidate after-sales services.
Time Horizons
Key Roles Affected
Executive Summary
Harrods will merge its Fine Jewellery and Fine Watch rooms into a single, integrated two-floor destination as part of a multi-year, multi-million pound masterplan. The redesign aims to meet or exceed top monobrand standards from Bond Street, Place Vendome, and Dubai Mall, strengthening Harrods' appeal to global collectors while mitigating the UK tax-free shopping disadvantage through superior experience and clienteling.
Actionable Insights
Immediate Actions (Next 30-90 days)
Implement phased construction with revenue-protection levers: night-time works where feasible, pop-up lounges, and protected appointment corridors to keep at least 80% of category trading capacity live per phase.
Rationale: Maintains conversion and client continuity during disruption while preserving top-spender experience.
Role affected:CEO/COO
Urgency level:immediate
Negotiate exclusive editions and allocation uplifts with top 10 maisons (e.g., high-jewellery capsules, limited watch references) contingent on boutique footprint and VM standards.
Rationale: Secures differentiation and supply in constrained categories, amplifying reopening impact.
Role affected:Chief Merchandising Officer
Urgency level:immediate
Short-term Actions (6-12 months)
Secure brand-partner capex co-investment and performance-based rent structures targeting >40% external contribution to refit costs and tiered rent tied to sales per sq m.
Rationale: De-risks cash outlay and aligns partner incentives to productivity uplift, protecting ROI.
Role affected:CFO
Urgency level:short-term
Lock an advance calendar of high-jewellery and haute horlogerie previews tied to re-opening milestones and pre-book top clientele with personalized assortments.
Rationale: Front-loads demand and elevates exclusivity, driving early ATV and conversion lift post-refit.
Role affected:Chief Client Officer/CMO
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Sales disruption during construction leading to conversion and ATV declines.
- UK’s lack of tax-free shopping dampening tourist spend vs Paris/Milan/Dubai.
- Brand-partner delays or insufficient co-investment slowing rollout or limiting footprint quality.
Primary Opportunities
- Create London’s most comprehensive two-level jewellery and watch hub, consolidating UHNW traffic.
- Win exclusive allocations and events that monobrands cannot match in a multi-brand environment.
- Leverage integrated after-sales to increase lifetime value and repeat purchase frequency.