A BBC documentary and podcast heard testimony from over 20 former female workers who said Al Fayed, who died last year aged 94, sexually abused them, with incidents taking place in London, Paris, St Tropez and Abu Dhabi.
One of the women who accused Al Fayed of raping her when she was a teenager described him as a "monster": "He actively cultivated fear."
According to the BBC documentary, which aired on Thursday, Harrods failed to intervene, and helped to cover up abuse allegations during Al Fayed's ownership between 1985 and 2010. All the women the BBC spoke to said they felt intimidated at work.
"We are utterly appalled by the allegations of abuse perpetrated by Mohamed Al Fayed," Harrods said in a statement.
"These were the actions of an individual who was intent on abusing his power.
"We also acknowledge that during this time his victims were failed and for this we sincerely apologise," Harrods said, adding the department store was today a "very different organisation" to the one owned and controlled by Al Fayed.
Several media organisations have exposed allegations of sexual abuse against Al Fayed in the past, including Vanity Fair in 1995, ITV in 1997 and Channel 4 in 2017.
Many of the women only felt able to speak publicly after he died last year.
SETTLING LEGAL CLAIMS
"Since new information came to light in 2023 about historic allegations of sexual abuse by Al Fayed, it has been our priority to settle claims in the quickest way possible, avoiding lengthy legal proceedings for the women involved," Harrods said.
The process is still available for any current or former Harrods employees.
In 2009, prosecutors decided not to charge Al Fayed over a claim he sexually assaulted a 15-year-old girl in his store, saying there was "no realistic prospect of conviction".
He voluntarily attended a police interview under caution and has always denied the allegations.
Al Fayed sold Harrods to the investment vehicle of the Qatar royal family in a deal reported to be worth about £1.5 billion ($NZ3.1 billion) in 2010.
Born in the Egyptian city of Alexandria, Al Fayed began his career selling fizzy drinks and then worked as a sewing-machine salesman. He built his family's fortune in real estate, shipping and construction, first in the Middle East and then in Europe.
Al Fayed spent 10 years trying to prove Princess Diana, a member of the British royal family, and his son Dodi were murdered when their car crashed in a road tunnel in Paris in 1997 as they tried to outrun paparazzi photographers on motorbikes.
His claims were unsupported by any evidence, according to the inquest into Diana's death.
