Harrods Is Solving Its Excess Inventory Problem, Here is How
Like many luxury retailers, Harrods is grappling with a serious problem: how to shift the unprecedented volume of excess inventory that has piled up after almost three months of forced closure without damaging its brand equity.
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The solution? Harrods Outlet, a new pop-up store at London’s Westfield White City shopping mall that the retailer will use to house this year’s Harrods summer sale. Shopping malls are losing tenants as the Covid-19 pandemic takes its toll on the retail sector, and the Harrods outlet will take the place of a recently shuttered Debenhams.
It’s an unusual move for a store like Harrods, which is known for catering to the wealthy and has shied away from expanding its retail footprint beyond its iconic Knightsbridge flagship, save for a handful of airport concessions selling tourist merch. But faced with large amounts of unsold product and the likelihood of continued social distancing measures, the department store had to get creative, said Managing Director Michael Ward.
Source – Business of Fashion
