Fortnum & Mason has taken retail and dining space at the Royal Exchange in a bid to extend the reach of its flagship Piccadilly store.

The luxury department store will occupy 2,368 sq ft of retail space and a courtyard spot for dining and a bar area with up to 90 covers. It will stock a range of its most popular food products and its iconic hampers.

Fortnums takes over the space from D&D London, which has run the Grand Café, The Gallery, Threadneedle Bar and Sauterelle for 15 years but will exit the Royal Exchange this summer.

Fortnum & Mason chief executive Ewan Venters said: “Fortnum’s at the Royal Exchange is the manifestation of our message that London remains open, and that the world’s most important financial centre in the City remains vibrant.

“The Royal Exchange provides not only an important postcode location, but a culturally important environment bringing together two brands with a shared history in trade.”

Fortnums is performing strongly, issuing a robust Christmas trading update with sales up 13% in the five weeks to December 31.

It has recently expanded from its Piccadilly flagship to two travel sites in St Pancras International and Heathrow Terminal 5.