House of Fraser is to close its landmark Kensington department store
House of Fraser is to close its landmark Barkers department store in London's Kensington, which has traded since 1870.

However, its disappearance will provide an opportunity for US newcomer Whole Foods Market, which is set to open its first UK supermarket there.

As Retail Week went to press, it was understood that House of Fraser, which has owned the 90,000 sq ft (8,360 sq m) store since 1957, was poised to surrender its lease.

Natural food supermarket Whole Foods Market has emerged as frontrunner to take the space. Whole Foods acquired Fresh & Wild in January 2004, but intends to open bigger UK stores under its own fascia.

House of Fraser's decision was prompted partly by London's changing shopping patterns. A source familiar with the situation said: 'From a House of Fraser perspective, trends are changing. The draw for fashion shoppers is the West End more than Kensington.'

A huge shopping development planned for White City in west London may further reduce the appeal of Kensington for many consumers. House of Fraser will also be transformed by its acquisitions of Jenners and Beatties.

At the end of July, Whole Foods Market boss John Mackey said he was close to a property signing in an 'exciting' central London location. Nasdaq-quoted Whole Foods Market achieves sales of more than£2 billion and has about 160 stores in the UK, US and Canada. Its US store openings are between 45,000 sq ft and 75,000 sq ft (4,180 sq m and 6,970 sq m). During the third quarter, Mackey said comparable sales at Fresh & Wild, which runs much smaller shops, were 'phenomenal'.

Barkers employees are likely to be offered the opportunity to be redeployed at other House of Fraser stores across London.

Both retailers declined to comment, as did Cushman & Wakefield, Whole Foods Market's agent, and Churston Heard, House of Fraser's adviser.