Shopping Boom Coming to U.K., Harrods Managing Director Ward Tells Bloomberg TV
NEW YORK (TheStreet) -- Retailers in the United Kingdom are looking to take advantage of the weakened British pound, via tourism.
Michael Ward, the current Managing Director of the London-based retail giant Harrods, sees the current economic climate as an opportunity to attract more customers to its top-end and struggling mid-line brands.
"The shopper moves with it so we will see the influx of shoppers into the U.K.," Ward said on Bloomberg TV's "European Close." "The luxury in the top end is doing very well [and] the bottom end is doing well, but the middle has some problems."
About 70% of Harrods products come from within the European Union, with the majority from France and Italy with "cards and electronic goods in Germany," Ward noted. While it is too early to tell if there is an increase in the amount of foreign shoppers in the U.K., Ward is already "seeing the European visitor coming overseas to Harrods and actually spending in that luxury sector."
Harrods' Middle Eastern customer base is buying less this month due to Ramadan and its Chinese shoppers will be delayed in taking advantage of the currency difference due to the length of time it takes to have a visa approved. Ward is confident, however, that additional demand will come from smaller nations as well.
"Our business with Thailand is 20% bigger than the business with the United States in our first quarter," Ward added.
It was reported in March that Ward will be stepping down as Harrods' Managing Director later this year.