Harrods is to open up a standalone food store for the first time in its 150-year history.
The luxury department store is expanding to the north side of Brompton Road, SW3, opposite its landmark Knightsbridge building.
The store will form part of the redevelopment of the former Harrods depository site that owner Mohammed al Fayed sold to Bahrain International Bank subsidiary Crown Dilmun last year for £53m.
Harrods will pay £300 zone A for a 10,000 sq ft (107,643 sq m) store over the ground and basement at Trevor House, 96-104 Brompton Road.
Crown Dilmun plans to convert the 160,000 sq ft (14,864 sq m) building into 40 flats within the main depository building, together with 50,000 sq ft (4,645 sq m) of shops and offices on Brompton Road.
Harrods refused to comment on whether the deal is part of a strategy of opening further standalone stores across the country, but a source close to the deal said: “Harrods has no plans right now to follow Marks & Spencer’s lead by developing a chain of food halls.
“It is worried about coming under fire for diluting the brand.”
The news comes as a number of other retailers have quit the south side of Brompton Road for the north.
A number of units owned by BP Pension Fund have become vacant on the south side following retailers’ moves to Prudential’s Knightsbridge Green scheme on the north side.
Monsoon and French Connection, at numbers 29 and 57 respectively, are both to take units in the 28,000 sq ft (2,601 sq m) retail element of the scheme.
Upmarket jeweller Graf is also seeking to dispose of its lease at number 55 Brompton Road.
Goldenberg & Co is acting for Crown Dilmun, while Jones Lang LaSalle and Ashley Phillips Selwyn are letting agents for Knightsbridge Green.
EGi News 02/09/02
