The HKRI Taikoo Hui Cha House, where Harrods' Residence and the Tea Room are located.
Harrods will shut its Shanghai operations, including its private members’ club Harrods Residence and the Harrods Tea Room, in January 2026 and dissolve its local team, the British luxury retailer said in a statement, reported 21st Century Business Herald yesterday.
After careful consideration, Harrods has taken the decision not to renew its building lease in Shanghai and instead focus on providing experiences and services where we believe we can deliver the most impact in China, the company said, adding that China and Chinese clients remain very important to the brand.
The closure ends a short-lived experiment launched at the end of 2023, when Harrods opened its first overseas private club inside Shanghai’s century-old Zha Residence at Taikoo Hui. The venue housed Gordon Ramsay’s first restaurant in the city and charged at least 150,000 yuan (US$21,105) for membership, capped at 250 members.
A former partner told 21st Century Business Herald the decision came as a surprise. “We didn’t expect it. It was a new business model, and it’s a pity,” he said, noting that the model “may simply not fit” Chinese networking culture, which is still dominated by local chambers and industry associations.
Harrods emphasized it will continue hosting exclusive pop-ups, supporting local creative talent, engaging Chinese customers through digital channels, and exploring wholesale opportunities, while welcoming Chinese shoppers to its Knightsbridge flagship, the report said.
Analysts said the exit may also be linked to strategic adjustments at landlord Taikoo Hui, which recently drew massive traffic after Louis Vuitton built the viral "LV Dream Cruise" installation in June.