What: Harrods announces its most ambitious renovation project to date, creating a two-story watches and jewellery destination featuring innovative vertical boutiques and Europe's first curved escalators.

Why it is important: This development signals a strategic pivot towards the fast-growing hard luxury sector, with Harrods creating a unique shopping environment that challenges traditional department store formats.

Harrods is embarking on its most significant architectural transformation in recent history, with a multimillion-pound renovation of its watches and jewellery department. The project will create a striking two-story destination spanning the ground and basement floors of the Knightsbridge flagship. Central to the design are Europe's first curved escalators, which will create a dramatic sense of arrival for customers. The innovative format abandons traditional multibrand display cases in favour of individual two-story "vertical" boutiques for major brand partners, each featuring private stairs or lifts. This revolutionary approach allows brands to create intimate shopping experiences akin to standalone stores, while smaller partners can offer customised retail environments without the need for independent locations. The development, approved by city planning officials, will commence next year and represents Harrods' most architecturally significant redevelopment of the 175-year-old building.

IADS Notes: Harrods' ambitious watches and jewellery department transformation builds upon a series of strategic developments throughout 2024-2025. In November 2024, the company demonstrated its commitment to retail innovation through the renovation of its Designer Collection rooms, creating more intuitive spaces and enhanced customer navigation. This was complemented by the successful revamp of The Georgian restaurant, showcasing Harrods' expertise in creating experiential retail destinations. The company's strong financial performance, reported in September 2024 with turnover reaching GBP 898.4 million (up 8%), has provided a solid foundation for this latest investment. The new watches and jewellery concept, with its innovative vertical boutiques and architectural transformation, represents Harrods' most significant structural change in recent history, reinforcing its position as a global luxury destination while responding to the growing importance of the hard luxury sector.

Harrods is betting big on the fine jewellery boom