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Harrolds: Australia’s Upmarket Menswear Destination, For Fathers and Sons

By
  • BoF Team

MELBOURNE, Australia — Harrolds menswear boutique was founded on Melbourne's Collins Street in 1985. To better cater to increased demand, an additional location was added on the same street in the succeeding years.

But then, ten years ago, owner John Poulakis more than tripled the size of his retail proposition, combining the two stores in one location, and seeking out a new consumer in the process. Transforming the 300 square-metre ground floor into a “super-luxe” fashion department, intended to appeal to a younger generation, Harrolds has achieved its aim of dressing both established professionals and society figures, as well as their sons. Harrold's also opened a branch in Sydney’s sprawling Westfield Centre in 2010.

BoF spoke to founder and owner John Poulakis to learn more.

BoF: How did Harrolds first come about?

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JP: It was an idea that was born 35 years ago, to go into premium menswear and provide not only a product but to provide a service. I was working in the middle level clothing market, and it was from there that I could see that there was a market for luxury, European brands. I could see there were people wanting more.

I can assure you that the standard of dress at the time on a general basis was good, but not that good. We needed to educate. It was about educating the [client] on differences between the English make and the Italian make and all that sort of merchandise that goes along with the well-tailored suit. Garments that are constructed well and they have flair about them. The customer we sell to, we try to educate them in those labels. We really make relationships with our customers in order that we are able to dress them. We don’t sell to them; we dress them.

BoF: How does educating your consumers impact the store’s product assortment?

JP: Today in classic luxury, which is our tailored garment scenario, and the more elegant dress, I would say we’re about 95 percent Italian. We have Brioni and Stefano Ricci and Caruso. We were the first to introduce Stefano Ricci. We were also the first to introduce the Caruso label and we’ve been working with them for about 25 years. We had to educate the client on what the product was and what were its values. We’re in the business of selling very upmarket attire but we’re also in the business of building relationships with our clients. We’re building a trust factor.

To a customer who says, “You’re trying to sell me this suit.” I would say, “No, listen. That’s the last thing I want to do. I’m not trying to sell you the suit. My interest is to sell you four or five suits down the track, not this one.” I’m looking to build that customer’s confidence about what he’s going to wear, and how he’s going to look, and how he’s going to be perceived by his peers.

BoF: How would you describe the Harrolds consumer?

JP: Over the last 30-odd years, the Harrolds consumer traditionally was a well-heeled executive, a well-heeled businessman, someone who wanted to be professional and someone who wanted to be dressed appropriately, and honestly, they needed help. That was the traditional Harrolds consumer. That age group was about 35 – 60. But about two years ago, we did a complete turnaround in the business.

BoF: What did that entail?

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JP: We were looking for a new market. From what we call "the classic luxury," we introduced a fashion component, importing brands like Givenchy and Alexander McQueen and Balenciaga and Saint Laurent and Margiela. That bought in a completely different customer. The reason I did that was because I used to stand outside the shop and look at the windows and see what the merchandise was like, and I would see young fellows walk past and say, "That's Harrolds. That is a great shop, that's where my father shops." I was just standing there scratching my head and thinking, I need to get those guys in there to shop as well. So that's how we transformed the business — fathers and sons shopping at the same time, and shopping at different levels.

BoF: How much of the shop is dedicated to this new fashion element?

JP: It is actually 50/50. It is a commitment and it’s very unique to have that sort of mix in a specialty retailer. I have a lot of internationals who come around to look at the store because they heard about it, and they scratch their head and say, “How did you achieve this? How can you sell Brioni and sell a pair of Saint Laurent torn jeans?” That was the art form to it, to be able to achieve this. We’ve had a lot of crossover from clients who shop Givenchy to shopping Brioni. And also from Brioni, people are going to buy Balenciaga shirts and Saint Laurent t-shirts. You have a Brioni customer who wants to feel or appear to be younger on the weekends as well. We’ve seen it cross both ways. We work hard and we get the job done. It’s about being innovative and not being scared of change.

BoF: How would you summarise Harrolds’ overarching approach?

JP: It’s creating a luxury department store, albeit on a small scale, for both a fashion conscious younger person and the more sophisticated, elegant, business-like consumer and putting them into one: that has been the true success of Harrolds. Going into a larger play was a masterstroke.

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