Harvey Nichols refocuses strategy by axing festive hampers and non-core operations

Harvey Nichols, the historic British luxury retailer, has announced plans to discontinue its food and hamper divisions as part of an ambitious strategy to return to profitability. The decision is expected to put around 70 jobs at risk, with the changes aimed at repositioning the brand as a leading destination for high-end fashion, beauty, and premium experiences.

The retailer, which has faced mounting financial pressures, revealed that its revenue fell 5 per cent to £204.8 million in its most recent financial year, with pre-tax losses increasing to £34 million – a significant rise from the £21 million recorded the year before. Chief Executive Julia Goddard, who joined last year, said the move is integral to re-establishing Harvey Nichols as a “British icon and flagship destination”.

The department store has long been associated with curated luxury and was once a favourite of Princess Diana, as well as the focal point of popular 1990s BBC sitcom Absolutely Fabulous. However, its glory days have faded amid intense competition and evolving consumer habits, leaving the company grappling with declining revenues for the fifth consecutive year.

The closure of the food and hampers division is part of a multi-year transformation strategy that includes streamlining the retailer’s online marketplace and a substantial refurbishment of its iconic Knightsbridge flagship store. The aim is to realign the business with its core offerings, focusing primarily on premium fashion, beauty, and hospitality services. Seasonal hampers, like the extravagant £1,000 “Big One”, and corporate food lines, which contributed marginally to the retailer’s earnings, will no longer form part of its portfolio.

The group explained that consultations with affected staff across non-core areas began this week. Harvey Nichols, which employs 1,400 staff members, stated that it is committed to supporting those impacted through this period of restructuring. The company’s leadership affirmed the move as critical to ensuring the long-term sustainability of the business.

Speaking about the shift, Julia Goddard highlighted that many consumers have “forgotten” about Harvey Nichols. She remained optimistic that the revitalised strategy will reposition the brand as a contemporary icon catering to today’s luxury customer base. Alongside its planned store refurbishment, the retailer has promised to elevate customer experience while reviving its reputation as a premier destination for premium retail.

As the retail landscape continues to evolve, Harvey Nichols’ pivot away from less profitable divisions signals a sharper focus on high-margin sectors aligned with its heritage as a luxury brand. Time will tell whether this transformation can reignite the public’s affection for the department store, which once epitomised the epitome of British glamour.