70 - info - february / march 2011

@ t he ch a mber . . .

Recent Events

||| Harrods has set the gold standard for service, for quality and for consistency. This is the recipe for its long history as London’s premier retailer, says Michael Ward, Harrods managing director and a man with an exceptional grasp of the luxury market. Michael Ward addressing a Retail Industry Event arranged by the Chamber on the evening of January 27 at the Connaught, a premium hotel in London’s Mayfair district. ‘At a time when many shops are standardising and aiming for the average, we have risen beyond blandness to achieve something of real interest and quality.’

Visiting Harrods is not merely a shopping activity it is a ‘retail experience, we are completely in the luxury sector.’ The company seeks to build close relationships with customers, through its Reward Card and its ‘clienteling system’. This way, the shop knows what its customers buy, what they spend, how often they visit and when their birthday is. The clienteling magazine goes every month to 110,000 customers.

As with so much of the luxury sector, the shop is benefiting from an influx of visitors to London from the Middle East and China. Over the last four years, sales from China have grown 45%, from Russia 25% and from India 42%. Many French luxury brands are sold at Harrods and Michael Ward said that over the last five years, French brands have dramatically (150% to 16%) outpaced Italian competition in terms of compound growth.

Looking forward to the outlook, Michael Ward said the shop was less likely to be affected by the VAT rise from 17.5% to 20%, than by the possibility of a hike in interest rates, which he believes would impact on discretionary spending.

Answering questions from the audience, Michael Ward outlined the store’s comprehensive and rigorous staff selection and training system. He noted that Harrods launched the first degree programme in retailing in the UK. I

Harrods sets the gold standard for retailing, Managing Director, Michael Ward tells Chamber cocktail

27th January: Retail Industry Event sponsored by Chanel

Michael Ward speaking at the Chamber Cocktail

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The event was well attended

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Harrods Statistics

1.3 Million customers visit Harrods every year from 134 countries around the world

2.9 Million carrier bags

16 tonnes of cupcakes sold during Christmas

One famous Harrods bag sold every 12 seconds

4 thousand packets of snow sold during the Christmas period

5000 employees and 1 million square feet

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