How Much Is Harrods Worth?
Harrods, the iconic luxury department store located in Knightsbridge, London, is not only a shopping destination but also a symbol of opulence and prestige. With its rich history and expansive retail space, Harrods has become a global icon in the world of luxury retail.
When considering the value of Harrods, it is essential to take a closer look at its financial snapshot. As of 2017, the department store reported a staggering revenue of £2 billion, with an operating income of £253.3 million and a net income of £233.2 million. These impressive figures speak to the store’s enduring success and immense worth.
Harrods is owned by Harrods Ltd, which is currently under the ownership of the state of Qatar through the Qatar Investment Authority. This acquisition in 2010, for approximately £1.5 billion, marked a significant chapter in the store’s history, ensuring its continued growth and global development.
With its 330 departments spread across 1.1 million sq ft of retail space, Harrods attracts 15 million visitors annually. These visitors are drawn to the store’s unparalleled collection of high-quality and luxury goods, making their shopping experience unforgettable.
Furthermore, Harrods has expanded its influence beyond the realm of retail with subsidiaries like Harrods Estates, Harrods Aviation, and Air Harrods. These subsidiaries further enhance the reputation and value of the Harrods brand as it extends into different sectors.
Harrods truly exemplifies what it means to be an iconic luxury department store. Its financial success and global recognition have solidified its worth as an enduring symbol of luxury and opulence. Whether you’re a visitor seeking a remarkable shopping experience or an investor looking for a prestigious asset, Harrods delivers on all accounts.
Record-Breaking Year for Harrods’ Turnover
In 2022, Harrods had a remarkable year of financial growth, achieving record-breaking results. The luxury department store experienced a significant increase in operating profits, with a staggering rise of $167.2 million in the 12 months ending January 2023. Furthermore, Harrods’ turnover soared by an impressive 52%, reaching an astounding $1.3 billion.
Despite the challenging circumstances posed by the Covid-19 pandemic, Harrods saw a subdued return of the global tourism trade, which plays a crucial role in the store’s success. In fact, Harrods surpassed its pre-pandemic figures, with a remarkable 51.1% increase in gross transaction value compared to 2019.
The emphasis on renowned luxury houses, such as Dior and Louis Vuitton, undoubtedly contributed to Harrods’ stellar performance. A collaboration with Dior, in particular, resulted in extraordinary sales amounting to over $31.8 million, cementing Dior as the top brand at Harrods.
Looking ahead to 2023, Harrods aims to sustain its growth trajectory by offering exclusive products and further enhancing its dining offerings. These strategic initiatives reinforce Harrods’ commitment to maintaining its position as a global leader among luxury department stores and ensure its continued success.
Sale of Harrods to Qatar Holding
After 25 years of ownership by Mohamed Al Fayed, Harrods, the iconic luxury department store in Knightsbridge, London, underwent a significant ownership transfer. The sale of Harrods to Qatar Holding, a subsidiary of the Qatari royal family’s Qatar Investment Authority, took place in May 2010 for an estimated £1.5 billion, marking a historic moment for the renowned establishment.
Mohamed Al Fayed, who also owned Fulham football club, completely divested his financial interest in Harrods but was appointed as the honorary chairman following the sale. This move bridged the transition from Al Fayed’s era to the new ownership under the Qatari royal family’s stewardship.
Qatar Holding’s acquisition of Harrods demonstrates their commitment to developing the store’s global potential as an unrivaled luxury brand and further expanding its sales worldwide. The transfer of ownership proved to be a valuable and prestigious asset for Qatar Holding, aligning with their strategic investment portfolio.
Harrods’ Resilience and Continued Growth
Despite the challenges brought about by the recession, Harrods has not only weathered the storm but emerged stronger than ever. In the year ending January 2009, the iconic store achieved record sales of £752 million, a remarkable feat considering a 15% drop in profits due to extensive refurbishment programs.
One of the key factors contributing to Harrods’ success during this period was the weak pound, which enticed wealthy tourists from around the globe to indulge in luxury shopping at the illustrious department store. The allure of Harrods’ extensive offerings, coupled with the exclusivity and prestige associated with the brand, proved irresistible even in turbulent economic times.
The acquisition of Harrods by Qatar Holding further solidified its status as a beacon of success. Under the ownership of the Qatari royal family, Harrods has become a prized asset in their extensive UK portfolio. The legacy and traditions of this iconic institution are expected to be upheld and further enhanced, ensuring Harrods continues to thrive in the ever-evolving luxury retail landscape.
