Harrods is to drive its burgeoning own-label offer with the opening of in-store boutiques for the eponymous clothing and accessories ranges.

The boutiques, which will open by 2012, will house Harrods’ own-brand range, which has formed a larger part of the iconic department store’s business.

Harrods is the latest in a string of department stores to back its own-label offer, with chains such as Liberty, House of Fraser and Debenhams also chasing margin by pushing the strategy.

Lower-priced own-label merchandise has also appealed to price-sensitive shoppers during the downturn.

Harrods’ own-label offer would also be easier to translate to overseas markets, avoiding the problems of exclusive licensing agreements with its other brands and opening up the possibility of licensing its own-label to other retailers.

In May, rival Liberty said it had signed a deal for Italian manufacturer Slowear to produce a Liberty of London menswear collection and said it would seek further partnerships to expand its international presence.

Harrods’ new owners, Qatari investment fund Qatar Holding, said it would pursue overseas expansion as part of its plans for the Knightsbridge retailer, which it acquired for £1.5bn in May.