Harrods to open first department store in China to chase growth

British department store Harrods looking to tap into demand for luxury goods from China's surging middle class.

Harrods will open its first store in China next year amid growing clamour for luxury goods from the country's surging middle class.

The department store's first stand-alone site outside Britain will open by the middle of next year and be located in Pudong, a district in Shanghai.

In an interview with The Daily Telegraph, Michael Ward, Harrods managing director, said after 10 years of investing in China it has responded to customer demands for a more permanent presence.

Ward expects the site to be particularly popular among younger consumers.Almost a third of Harrods' customers in the country are millennials, consumers generally aged between 1981 and 1996.

He said: "If you look at all of the reports, they say, quite categorically that all of the growth in the next five years is going to come from south-east Asia. And is going to come from millennials.

"So we've got to go after that. It's very important that you follow the money.

"We see continued growth of China, but we see a need to be a more permanent resident in China."

Called The Residence, the site will be limited to high-end private shoppers who will also have access to a bar and tea room on site and events hosted by luxury brands throughout the year.

The success of its flagship Knightsbridge store - responsible for the lion's share of last year's £2.1bn sales - is driven in large part by its popularity with rich Chinese shoppers visiting London.

A spokesman said: "Private shopping clients have consistently asked for a more permanent presence."

The Daily Telegraph--Telegraph Media Group