Harrods is planning to combine its Fine Jewellery and Fine Watches departments into a two-storey retail space, according to a planning application filed with The Royal Borough of Kensington and Chelsea in April. The changes are part of a wider refurbishment of the Knightsbridge store’s luxury offering.
Unified Layout for Jewellery and Watches
The proposed department will place jewellery and watch boutiques side by side across two floors, connected by curved escalators. Each boutique will span both floors and include a private internal lift to allow brands to separate retail and VIP spaces.
“Harrods has long stood as the global benchmark in luxury retail, and this investment is a statement of our continued leadership as we look to create an unrivalled environment to celebrate the best fine jewellery and watches the world has to offer,” said Michael Ward, managing director at Harrods.“This redevelopment is a powerful expression of our commitment to delivering a personalized, elevated, and world-class experience for every client. Our ambition is simple: to lead, not follow.”
Changing Store Configuration
Harrods has said that the traditional separation between Fine Jewellery and Fine Watches no longer reflects how many brands and consumers operate.
“Today, Harrods holds an important position on the global stage for luxury retail, but we must evolve to remain relevant in an increasingly competitive luxury market, to ensure we continue delivering exceptional experiences for our clients and ultimately continuing to drive growth.”
“It is clear that the notion of having separate departments for Fine Jewellery and Fine Watches is increasingly outdated and irrelevant in today’s luxury landscape. Our brand partners do not categorise their businesses in this way … with more than 60% of our boutique brands selling both watches and jewellery and/or ‘jewellery watches’.”
“We have closely studied our customer insights and recognise that there is a significant opportunity to maximise crossover business between each department, which could drive considerably increased trade once combined. As such, we believe it is strategically imperative to mix the Fine Jewellery & Watches departments into one combined destination for Hard Luxury.”
“When reviewing the best-in-class representations of this category globally, from Place Vendome in Paris to Dubai Mall, and NYC’s 5th and Madison Avenues, watches and jewellery boutiques are consistently presented side by side, with Harrods as the exception with redundant categorisation as separate departments.”
“Keeping jewellery and watches separate from one another risks perpetuating the image that watches are for men and jewellery is for women.”
Previous Layout Challenges
Harrods said that its 2017 Fine Watch Room refurbishment resulted in difficulties for both customers and brands. Rolex was allocated ground floor space, while other brands were placed on the lower ground floor.
“By creating two floors, each with a separate portfolio of brands, we have inadvertently created a feeling of hierarchy amongst the brands and have impacted the appetite of clients to browse the full department.”
“We struggled with driving footfall to the Lower Ground Floor within a land-locked environment.”
“As a direct result of this decision, we have lost key brands from our mix (Omega, Breguet, Blancpain and Longines), as well as experiencing ongoing challenges with our remaining brand partners, which have significantly limited our commercial opportunities. We cannot repeat this mistake.”
Harrods noted that brands now expect increased retail space and private areas within each boutique.
“If Harrods cannot deliver significantly more retail space, within an architectural layout that allows for elevated client experience, hospitality, and private VIP salons within each brand space, we know for a fact that we will lose a number of the most important brands from our portfolio.”
