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Harrods was established in 1834 in London's East End, when founder Charles Henry Harrod set up a wholesale grocery in Stepney, with a special interest in tea.
In 1849, to escape the filth of the inner city and to capitalise on trade to the Great Exhibition of 1851 in nearby Hyde Park, Harrod took over a small shop in the district of Knightsbridge, on the site of the current store. Beginning in a single room employing two assistants and a messenger boy, Harrod's son Charles Digby Harrod built the business into a thriving retail operation selling medicines, perfumes, stationery, fruit, and vegetables. Harrods rapidly expanded, acquired the adjoining buildings, and employed one hundred people by 1880.
However, the store's booming fortunes were reversed in early December 1883, when it burnt to the ground. Remarkably, in view of this calamity, Charles Harrod fulfilled all of his commitments to his customers to make Christmas deliveries that year - and made a record profit in the process.
In short order, a new building was raised on the same site, and soon Harrods extended credit for the first time to its best customers, among them Oscar Wilde, legendary actresses Lilly Langtry and Ellen Terry, Noël Coward, Sigmund Freud, A. A. Milne, and many members of the British royal family.
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