Showing posts tagged as: Harrods
The Selfridges Story: The Making and Unmaking of Harry (or Several Lessons in Cultivating Customer Satisfaction)
“People will sit up and take notice of you if you will sit up and take notice of what makes them sit up and take notice.” ~ HG Selfridge
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Before I ever visited the UK I wasn’t at all familiar with Selfridges. I knew about Knightsbridge and Harrods and its preciously preserved pedigree all right…we’ve done that! My first time in London I was on a bus travelling (make that crawling) down Oxford Street heading towards the West End when I was enlightened as to the existence of the second-best known upmarket London department store. As the bus idled stationary I spotted a sign in front of a building that said ‘Selfridges’, my first thought, I remember, was “strange name!”…but when I think about it now I vaguely recall that I had previously heard the name Selfridges, but without inquiring further at the time I sort of formed the literal impression that it was a store as the name sounded that “sold fridges”, ie, a purveyor of domestic white goods! So when I did eventually get my beak inside the store’s doors at 400 Oxford Street I was surprised to see lines and lines of (pricey) fashion wear, shoes, accessories, skin care products, bags and more – but not one refrigerator in sight! (in its time it has apparently sold most everything!)
Even without visiting Selfridges’ flagship Oxford Street store, you may well be aware of it or of its US-born founder Harry Gordon Selfridge thanks to the recent ITV television series Mr Selfridge (first aired in 2013). The series was a period drama about the flamboyant, visionary retailer and the interactions that take place around him in his eponymous London department store✱.
A Marshall Field blueprint for London
Wisconsin-born Harry Gordon Selfridge initially earned his business ‘spurs’ working for Chicago department store Marshall Field & Company (right), this segued into him purchasing his own department store in Chicago. In hardly any time at all the mercurial Selfridge abruptly re-sold the business, making a quick profit and retired to play golf. In 1906 while holidaying in London, Selfridge sensed a new retail opening for his entrepreneurial talents in the British capital. For £400,000 he purchased land and surrounds for a novel custom-built, mega-department store in the then unfashionable, western end of Oxford Street [‘Harry Gordon Selfridge’, Wikipedia, http://en.m.wikipedia.org].
“The American Invasion of London”
The London press was not initially warm to the notion of the American’s incursion into the world of London commerce. The City’s daily and drapery trade press described it as an “American Invasion of London” [Lawrence]. Selfridge’s loud in tone and bombastic approach to selling the project didn’t help in endearing him to the newspapers (described in some publications as being “aggressively big in scale”). Selfridge’s efforts to make the store a reality were driven by an unwavering vision: creating a “monumental retail emporium” was in his eyes the key to elevating “the business of a merchant to the Dignity of Science” (as he grandiosely put it). Selfridge believed to achieve that, he had to construct a gigantic “technologically advanced department store”, hence the massive amount of money, time and effort he put into the project [LAWRENCE, J. (1990). ‘Steel Frame Architecture versus the London Building Regulations: Selfridges, the Ritz, and American Technology’. Construction History, 6, 23-46. Retrieved from http://www.jstor.org/stable/41613676].
A ground-breaking, landmark modern steel-framed building
Construction of the Selfridge store was something of an architectural coup in itself. It won praise in its day from British building journals for its innovative construction methods…built with steel frames and reinforced concrete allowing for much narrower than usual walls, the frames permitted a far greater window area, so very large plate-glass windows could be installed (12 of which were the largest sheets of plate-glass then in the world!) – making for much more interior natural light and brightness (designed by famed US architect Daniel Burnham and associates). Originally comprising a 250′ x 175′ site, Selfridge’s had nine Otis passenger and two service lifts and six staircases. 100 separate departments were spread out over eight floors. While the physical construction of the Oxford Street store took only 12 months, Selfridge had first to overcome London City Council’s raft of objections (unprecedented size of the commercial structure, fire danger, etc). Selfridge and his engineers’ lobbying of the LCC Committee eventually resulted in the passing of two local building acts – LCC (General Powers) Acts of 1908 and 1909 – necessary for the Oxford Street project to be completed [Lawrence, ibid.]☯.
Rigid building regulations weren’t Selfridge’s only impediment to making his dream store a reality. Half-way through the project funding became a pressing issue when his partner and main backer Sam Waring, frustrated by Harry’s “grandiose and reckless approach” to the venture (Selfridge had grievously underestimated the complications of the project), withdrew his financial backing. The economic downturn in London (and in the US) at the time made alternative sources of funding a very grim prospect, and disaster was only narrowly avoided when a new backer, millionaire tea tycoon John Musker stepped in to rescue Selfridge [Gayle Soucek, Mr Selfridge in Chicago: Marshall Field’s, the Windy City and the Making of a Merchant Prince, (2015)]. After the big opening Selfridge remembered to make sure the store’s product lines included everything to do with tea-making (teapots, cups and saucers, sugar bowls, etc) [‘Selfridges: 7 things you (probably) didn’t know about the department store’, (History Extra), www.historyextra.com].
Selfridge, customer-centred strategies ahead of the curve
Harry’s approach to retailing was characteristically innovative on many fronts. Selfridge placed tremendous faith in advertising, the 1909 campaign leading up to the store’s opening cost a reported $500,000 in 1909 money [‘Selfridge Dies: Ripon Lad Who Jolted Empire’, The Milwaukee Sentinel, 9-May-1947 (online fiche)] (Britain’s biggest ever ad bill to that point) and he used it imaginatively together with ingenious publicity campaigns. Selfridge was the first retailer to make popular the idea of “shopping for pleasure”, rather than it being solely a functional task undertaken for necessity (as people conceived of it prior to Harry’s advent). In-store activities and arrangements often were original and novel (eg, displaying the monoplane used by aviator Louis Blériot in the first cross-English Channel flight at Selfridge’s (1909)✜). Another interest-generating feature in the store was Logie Baird’s television prototype shown on display in 1925.
Those specially designed wide windows were put to optimal use, Selfridge was the first to utilise window dressing where he could show off the latest fashions and utensils in open display [‘Selfridges 7 things’, loc.cit.]. The staff at Selfridge’s Oxford Street store (initially comprising 1,400 employees) were instructed to assist customers in their purchases, not to pester or use any “hard-sell” tactics on them⊟. Harry’s philosophy was “first get them in, then to keep them there. Thereafter they would buy” (Woodhead). One of Selfridge’s more forward-thinking moves was to locate the goods where they were visible and accessible to customers all around the store’s interior (a practice he devised while at Marshall Field’s in Chicago), rather than hiding them away from sight under counters (as had been the practice in most retail stores hitherto). He also introduced the concept of the “bargain basement” to retailing, a section where shoppers could find regularly discounted commodities [‘Innovation Lessons From The World’s First Customer Experience Pioneer — Infograph’, (Blake Morgan), Forbes Magazine, 26-Jun-2017, www.forbes.com ; Lindy Woodhead, Shopping, Seduction & Mr Selfridge, (2012)].
A visceral, holistic experience
Selfridge’s vision was to make the department store more than just a shop where you went to buy goods, he continued to introduce new features to Selfridges…elegant (moderately priced) restaurants, a library, reading and writing rooms and special reception rooms for French, American and ‘Colonial’ clientele. There were cookery demonstrations in the kitchenware section. All this marked a radical departure from the practices of other department stores which employed floorwalkers to ‘shoo’ people out of the store who were just hanging around and not actively engaged in buying an item! Even the store’s roof was put to productive if curious usage (a shooting range for an all-girl gun club as well as an ice rink✧) [Lawrence, loc.cit.].
The female shopper as an identified demographic
Selfridge saw the role of the department store in macrocosmic terms – “the store should be a social centre, not merely a place for shopping”. Unlike the conservative establishment of the day and much of the mainstream, Selfridge endorsed the Suffragette Movement…the new store was (in part) “dedicated to woman’s service”. In a 1913 advertisement Selfridge described the store thus: Selfridge and Co: The Modern Woman’s Club-Store” [‘Suffrage Stories/Campaigning for the Vote: Selfridge’s and Suffragettes’, Woman and her Sphere, (Elizabeth Crawford), 16-May-2013, www.womanandhersphere.com; ‘Selfridge Lovers: The Secret behind our house’, www.selfridge.com]. Astute businessman that he was, Harry popularised shopping as a leisure activity specifically for women…to make it a more welcoming and conducive place for them to spend time (and money!), he displayed freshly scented floral arrangements and had open vistas in the store, he employed musicians to perform and added beauty and hair salons (Paris-inspired) and art galleries. And he introduced public restrooms for women to the store (the first time ever done!)❅
[Forbes, loc.cit.].
The H.G.S. leadership style
As retail magnate go, Selfridge went against the grain for his day by not being an authoritarian business leader. He was temperamentally inclined towards fairness with regard to remuneration, increasing the wages of his staff, elevating them above “wage slavery”, treating them as employees as opposed to ‘servants’ (cf. Harrods) [ibid.]…not to overstate it, Selfridges shop floor staff were still exposed to long, long hours of drudgery but they were paid a livable wage for their arduous labours. A sample of the quotes attributed to Selfridge reflect his anti-dictatorship approach to business and interpersonal relations: “The boss drives his men, the leader coaches them” ; “The boss depends on authority, the leader on good will” ; “The boss says ‘I’, the leader says ‘We'” ; “The boss inspires fear, the leader inspires enthusiasm” ; “The boss fixes the blame for the breakdown, the leader fixes the breakdown” ; etc.✥ [‘Harry Gordon Selfridge’, Wikipedia, op.cit.]
Tower folly Selfridge’s thrived, prospered and grew after the Great War (the store size doubled). Things didn’t always go the Wisconsin-born retail magnate’s way however…a couple of commercial reversals suffered by Harry during the decade concerned his plans for erecting a massive tower from the building which was rejected by the LCC Committee because of excessive height, and possibly also because it would have vied with the iconic St Paul’s Cathedral for attention (a fortunate outcome perhaps as the model drawings for the tower suggest the result would have been an incongruous coupling of architectural forms and a hideous eyesore!) [Lawrence, op.cit.]. The other setback was Selfridge’s proposal for a tunnel between the store and the nearest tube station, Bond Street, the plan ultimately got kiboshed!
Harry on the downslide By the late Twenties Selfridge & Co was at the top of its game, the name was synonym with quality merchandise and Selfridge took its place as a stellar institution on the London commercial scene. Some time after the onset of the Great Depression things started to turn badly pear-shaped for Selfridge, as for businessmen as a whole. Harry Selfridge contributed to his own decline however by persisting in his flamboyantly extravagant spending. He squandered money on his womanising ways for which he earned a certain notoriety, for instance, $4M was wasted on his dalliances and affairs such as with the Dolly Sisters (Hungarian jazz dancers) – a part of his story that the TV series was quick to focus on) [Forbes, loc.cit.. By 1940 the company owed £250,000 in taxes and Selfridge was deep in debt to the bank, forcing him to sell out and retire from the business (retaining a modest annual consultancy stipend) [‘Harry Gordon Selfridge’, Wikipedia, op.cit.; Milwaukee Sentinel, op.cit]
Selfridges’ Birmingham Bullring store ▼Selfridges post H.G.S.
Selfridge & Co’s reversal of fortunes signalled a move from its circling competitors…rival department chain John Lewis & Partners acquired some of Selfridges’ provincial stores in the Forties, which was a preliminary move to John Lewis’ eventual takeover of the flagship Oxford Street store (1951). In turn John Lewis was itself acquired by the Sears Group in 1965. Its current owners, the Anglo-Canadian Galen Weston company bought Selfridges in 2003 for a reported £598M. Today the store name ‘Selfridges’ survives on the Oxford Street building, and in the three other regional branches in the counties (Trafford Centre and Exchange Square, both in Manchester, and the Bullring in Birmingham).
FN: Harry Selfridge from when he first arrived was perceived widely as a Trans-Atlantic “blow-in”, splashing his (and his wife’s) money around, vociferously determined to show the established home-grown retailers what a ‘superior’ type of modern department store looked like. Selfridge displayed a talent for polarising opinion…to his dazzled admirers he was “the Earl of Oxford Street”, the flashy Midwest American merchant was “as much a part of the sights as Big Ben” (as one columnist waxed lyrically), but to his detractors (including many of his competitors and much of the London press) he was merely a “vulgar American tradesman” or worse [Milwaukee Sentinel, loc.cit ; Woodhead, op.cit.].
PostScript: ‘Selfridges gets Sixties hip In 1966, Selfridges, by now under Sears Holdings boss Charles Clore, recognised the youth market with a separate outlet for young women, Miss Selfridge (forming a link back to Harry Selfridge’s traditional focus on female customers). The new store in Duke Street signalled Selfridges’ wholesale embrace of the Sixties’ fashion revolution. Miss Selfridge used mannequins based on the straight line form of 1960s iconic model Twiggy and sold the latest in Mary Quant and Pierre Cardin fashions. In the early 2000s Miss Selfridge was acquired by the Arcadia Group [‘Selfridges 7 things’, op.cit.].
“The Queen of Time” AKA Ship of Commerce Statue ▼
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✱ described as “Downton Abbey with tills” [” ‘Mr Selfridge’: It’s ‘Downton Abbey’ with tills…”, The Telegraph, (Daphne Lockyer), 15-Dec-2012, www.telegraph.co.uk] ☯ the impressive Selfridge facade, personifying power and permanence, was later complimented by the addition of a decorative Art-Deco motif – the ‘Queen of Time riding her Ship of Commerce’ (clock-statue by Gilbert Bayes) ✜ around 12,000 visited the store to view the displayed history making French monoplane…no doubt plenty of these visitors also made spontaneous purchases while they were in Selfridge’s premises [Forbes, op.cit.] ⊟ Selfridge possibly was quite consciously also trying to make his front-line staff as unlike Harrods’ staff – who had a reputation for ‘snootiness’ and stiff formality – as he could! [Milwaukee Sentinel, loc.cit] ✧ recently the roof was again used in idiosyncratic fashion, by being turned into a “boat lake” and a “putt-putt” mini-golf course for customers ❅ in return, when protesting suffragettes smashed shops windows in Oxford Street, Selfridge’s was one of the few left unscathed ✥ other (very famous) attributed ‘Selfridgeisms’ are “the customer is always right” and “only xx shopping days till Christmas”
Harrods: Haunt of the Self-consciously Posh, the Shopaholic and the Curious in Search of a Luxury Fix
If you mention the name Harrods today to any self-respecting ‘shopaholic’, don’t be surprised to see them salivate at the prospect of exploring a shoppers’ paradise which boasts 330 different outlets – names such as Adidas by Stella McCartney, Armani, Christian Lacroix, Givency, Hugo Boss, Polo Ralph Lauren, R.M. Williams and Yves Saint Laurent all on the one site! It’s an appeal that has massive international traction too, visitors to London with just a minimal amount of shopping curiosity in their DNA will ink in a trip to the Knightsbridge SW3 store on their “must do” lists (even if only to pick out the least expensive souvenir gift they can find, or failing that the green and gold Harrods carrier bag!). But Harrods is more than a high street mega-store, it is an institution with staying power and expensive tastes – its intriguing backstory reaches nearly 170 years into the past to the early days of Victorian Britain.
Harrods was the brain-child of London draper Charles Henry Harrod…from the 1820s he had small drapery and grocery businesses in the East End but the salient year for the company’s future trajectory was 1849. In this year Harrod moved his business to Brompton Road (Knightsbridge), its present and ultimate location. Harrods’ mid-19th century relocation to Knightsbridge was strategic in its timing and advantageous to the company. Knightsbridge and Western London were areas just being opened up to development at the time. Most opportune, the Great Exhibition of 1851 was held in nearby Hyde Park and Henry Harrod was able to capitalise on its drawing power to increase the store’s trade.
After some formative years on Brompton Road, the Harrods business bounded ahead especially after the founder’s son Charles Digby Harrod succeeded him in the 1860s. Under the energy and drive of Digby’s leadership Harrod expanded in piecemeal manner, accumulating neighbouring properties and land through astute purchases. A fire in 1883 razed Harrods to the ground, a calamity which Digby turned into an opportunity to rebuild the department store on a larger scale. Architecturally, the new Harrods was palatial in style with a terracotta tile facade decorated with cherubs and swirling Art Nouveau windows and a Baroque-style dome [‘Harrods’, (Civitatis London), www.londonbreak.com].
Control of Harrods stayed in the Harrod family until 1894✱ when Richard Burbridge took over the running of the department store. Among Burbridge’s store innovations was the introduction of the first escalator in England in 1898. The escalator caused quite a stir among patrons, shock and horror even for some perhaps…so much so that precautionary measures were taken by staff, Harrods shopmen would perch themselves at the top of the escalator ready with brandy and smelling salts at hand for any customers who found the strange and novel experience of riding on the “moving staircase” (as it was oft called in the early days) too much! [‘Harrods’, Wikipedia, http://en.m.wikipedia.org].
It was under Burbridge’s reign that Harrods’ profitability escalated⌻ and the business established its brand and retail style…high-end quality, expensive products but the best quality and value for money. And it was during this time that Harrods gained a reputation for the purveyance of goods and merchandise that was not easily obtainable elsewhere, hence the firm’s motto, Omnia Omnibus Ubique (Latin for “All things for all people, everywhere”). The other constant in the Harrods ethos and credo is service, the retailer has always prided itself on the advice and assistance given to customers, as the tag-line on Harrods’ home page seeks to stress: “Enjoy exemplary personal service and an experience that can only be found at Harrods.”
Pets are us!
That penchant for providing the unusual and unexpected led Harrods to diversify into the pet supply business in 1917, but not just offering the commonplace, suburban garden-variety “moggies and mutts”. Harrods’ Pet Kingdom went for the real exotica in animals. For those exclusive customers who could afford it, Harrods acquired tigers, panthers, camels and the like. Who wanted such an exotic pet? In the main customers tended to be politicians, actors and celebrities. Noël Coward was the recipient of just such a gift, a friend purchasing an alligator for the playwright/composer/director/ actor/singer. Ronald Reagan, when running for California governor in the 1960s, contacted the store seeking a baby elephant (elephants being the symbol and mascot of the US Republican Party). Harrods’ legend has it that the staff assistant who took the call from America, replied to the future US president’s enquiry with the words, “Would that be African or Indian, sir?”✥ [‘Harrods’ pet department to shut after nearly 100 years’, (Pat Sawer), The Telegraph, 10-Jan-2014, www.telegraph.co.uk]
Pet shop boys
By far the most celebrated of Harrod pet stories is that of Christian the lion cub. Spotted by two young Australian backpackers in a cage in Harrods in 1969, the three-month-old lion ended up back in the boys’ trendy Chelsea flat. A year later through the agency of actors Virginia McKenna and Bill Travers, the rapidly growing lion was repatriated to Africa and set free by wildlife conservationist George Adamson in Kenya. Most people are aware of the story as a result of the video made documenting the two backpackers’ later reunion with Christian in Kenya (see also Footnote).
The extraordinary state of affairs that created Harrod’s zoo of wild animals could not last for ever. The passing of the Endangered Species Act in 1976 signified the end of this trade. After that, Harrods’ Pet Kingdom had to satisfy itself with selling more conventional household pets, cats, dogs, hamsters, guinea pigs and the like. In 2014 Harrods’ management pulled the plug altogether on the pet shop, the space was given over to an expansion of the store’s womenswear department [Sawer].
Harrods of Manchester and Buenos Aires After WWI Harrods entered an expansion period, acquiring other smaller retail outlets, most notably Kendals in (Deansgate) Manchester. After the takeover the name was changed to Harrods Manchester, but this met with strong disapproval from Mancunians, both staff and customers, and the name reverted to Kendals Milne in the 1920s [‘Kendals name dropped forever’, (David Ottewell), Manchester Evening News, 28-Oct-2005,www.manchestereveningnews.co.uk. Harrods no longer own Kendals, in 1958 ownership passed to department chain House of Fraser, and as of 2018, is owned by Sports Direct. Before the venture in Manchester, Harrods opened its one and only overseas outlet in Buenos Aires (1914). The Downtown BA store stayed in Harrods’ hands only until 1922 when it was bought by Argentinian retailers. Harrods Buenos Aires continues to operate independently under that name but a legal injunction prevents it from using the name ‘Harrods’ outside of Argentina [‘Harrods Buenos Aires’, Wikipedia, http://en.m.wikipedia.org].
Ownership passes offshore
As the 20th century progressed, Harrods’ rising prestige and continued growth made it a desirable retail takeover target (despite a terrorist attack by the IRA outside the store in 1983 which killed six bystanders). In 1985 Egyptian shipping magnate Mohamed Al Fayed and his brothers gained control of the House of Fraser group which included Harrods (at a cost of £615M). Under Fayed Harrods’ growth proceeded and added his own personal touches to the store, nothing more personifies that than the (some would say) garishly lavish and cluttered Egyptian Hall✫. An even more personal touch is Fayed’s staircase memorial to his son Dodi and (Lady) Di (replete with a bronze statue of the couple with symbolic seagull). In 2010 Fayed sold Harrods to another foreign concern, Qatar Holdings (ie, the Qatari Royal family) for £1.5bn, citing as his reason ‘frustrations’ over government delays re a Harrods “pension scheme” [Mohamed Al Fayed reveals why he sold Harrods’, (Andy Bloxham), The Telegraph, 27-May-2010, www.telegraph.co.uk].
The Harrods dress code
In 1989 Harrods introduced a dress code to the store (in Harrodspeak its called “Visitors’ guidelines”). The code specifies that the following are not permitted within the store – beachwear, Bermuda shorts, ripped jeans, bare mid-rifts or revealing clothing, uniforms of any description, thongs or flip-flops, cycling gear✦. In addition no visible tattoos are allowed, nor are clothing which have lettering with “objectionable language or design” (not exactly a formula to maximise Harrod’s sales potential with Gen-X’ers and Gen-Y’ers!). Backpacks must be carried in front of visitors, not worn on the shoulders⋇. Harrods a beacon of good deportment and presentation seeking to keep out the “riff-raff”? Wanting its patrons to all look like posh, debonair types? Snobbish elitism aside, management’s decision was arguably a rational response (albeit with a degree of overkill!) to the views expressed by Harrods’ core clientele (traditionally 60 per cent of Harrods customers live within three miles of the shop in the so-called Tiara Triangle of affluent Knightsbridge and Kensington). Harrods’ feedback from local clients, its rich ‘sophisticates’, was that they were increasingly unhappy shopping side-by-side with people who were dressed scruffily or in bad taste [‘Don’t come as you are: There is only Harrods dress code’, (Louise Levene), The Independent, 18-Jul-1994, www.independent.co.uk].
The Chinese are coming
By 2017 the basis of Harrods’ profitability had shifted – internationally. The firm’s efforts in courting the growing Chinese Middle class over the previous decade had paid off (managing director Michael Ward has been making four trips a year to China over that period to develop the budding relationship). Chinese shoppers, with their focus firmly on high-end fashion and accessories, were now outspending British ones in this most English of department stores, Ward disclosed that the Chinese made more than £200M worth of purchases at Harrods in 2016 [‘Chinese customers heralded as Harrods’ biggest spenders’, (Bo Leung), China Daily, 28-Nov-2017, www.chinadaily.com.cn].
Safe in Harrods’ hands A less well-known service that Harrods has provided for over 120 years is located at basement level in the store. Since 1897 the mega-rich of different nationalities (foreign royals, VIPs, movie stars, etc) have entrusted Harrods with their money and their assets – works of art, antiques, collectibles and other valuables. These are held in secure safe deposit boxes and strong rooms within the Harrods building [‘What You Don’t Know About Harrods (But the Rich and Famous Do)’, (Michael Levin), Huffington Post, 22-Feb-2017, www.huffingtonpost.com].
Harrods as you see it today in 2018 is five million square feet of department store, eight levels x 330 individual departments and 5,000 staff, with additional outlets in Greater London (airport stores at Heathrow and Gatwick). As well as the Egyptian Hall, there is a Crystal Room, a large and showy Food Hall (the Arts and Crafts tilework is a standout), a Wellness Clinic, 28 separate dining and drinking establishments, interior decorators, a travel shop, Waterstone’s book shop et al, Bespoke tailoring, a Floral Couturier, a Toy Concierge (who will help you source out the world’s most expensive toys – of course!) and much, much more.
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