Gretchen Friemann visits the newly refurbished Asprey flagship store in London's Mayfair - a shot across the bows of Harrods and Harvey Nichols

Last month's lavish opening party for the newly refurbished Asprey flagship store in London's Mayfair must have caused a flutter of agitation in neighbouring Knightsbridge where Harvey Nichols and Harrods have ruled supreme over the luxury retailing market for the last two decades.

While the grand old Dame of British retailing slipped seemingly irrevocably into obscurity, the two Knightsbridge stores have expanded and grown their brands to become international by-words for exclusive designer shopping.

But these pre-eminent positions may now be threatened by Asprey's grandiose refurbishment as a luxury lifestyle store, a dramatic upgrade from its former role as official jeweller to Queen Elizabeth.

And while many fashion aficionados may raise an eyebrow at the contradiction of the owners of the hip-hop brand, Tommy Hilfiger, now attempting to steer a British retail icon back to its former glory, it's impossible not to admire and gawp at the scale of this €60 million (£40 million sterling) refurbishment.

The soaring arched windows and restored cast-iron façade give some indication of the breadth of this project but enter into the store's central courtyard where architect, Norman Foster's atrium roof branches over Asprey's seven listed terrace houses and you begin to appreciate the extraordinary amount of time, money and effort poured into the restoration.

There is so much to take in, from the graceful curl of the free-standing spiral stair with its individually cut-stone steps that seem to defy gravity, to the crammed window boxes of jasmine that cascade down the house facades providing a burst of colour in the light-filled court-yard.

Hard to imagine then that this glorious space was once disused and bricked over. But as interior designer Mr David Mlinaric told reporters at last month's star-studded opening gala, the revival of Asprey's flagship was not so much a "restoration as a reconstruction".

So certain historic features were uprooted and moved to another section of the building, while others, like a magnificent 18th century carved fireplace, were uncovered and restored.

The pairing of Mr Foster, feted for his grand projects like Hong Kong's new airport, the Reichstag building in Berlin and the Great Court of the British Museum, with Mr Mlinaric, who restored Princess Diana's Spencer House, was undoubtedly key to the store's visual power.

While many customers will undoubtedly balk at the astronomic prices of most of the products, Asprey's is now a store where shoppers can browse freely without feeling the oppressive presence of an over-watchful sales person - and on Bond Street that is a rare find indeed.

Phil Armstrong, from the Dublin-based Douglas Wallace architecture firm, who project managed the store's refurbishment, points out that Asprey's new lay-out is designed to encourage shoppers to browse as well as afford privacy to the seriously moneyed jet-setters and celebrities, he hints are regularly purchasers.

Most of the departments have private "shopping" rooms, their function is not entirely clear but one presumes this is where the wealthy can decide whether to pair a €9,007 (£6,000) Asprey-made alligator bag with a €2,102 (£1,400) cashmere jacket, offset perhaps by €33,023 (£22,000) art deco sapphire and diamond necklace.

For those not so flush, some of the cheaper items include a small Asprey-scented candle for €127.5 (£85) or a set of 25 bookplates for €45 (£30).

Clearly, with these sort of prices, Asprey is targeting the very top end of the market and, with 1,858 sq m (20,000 sq ft) of selling space, industry experts predict the store will have to generate between €37m (£25m) to €52m (£35m) in annual sales to stay afloat. But, since its opening last month, Asprey's head of construction, Roger Ward, claims footfall has remained consistently between 300 and 500. However, he admits this level of consumer interest will have to rise if Asprey is to reach its sales target.

Christmas this year will be a crucial test of the new store's pulling power for London's super rich. According to Mr Armstrong, Asprey was initially scheduled to open its doors last November but spats with Westminister Council over various design plans delayed the launch for another six months.

Depending on the success of the London store, Asprey plans to roll out a further 15 to 30 stores over the next 10 years, and to fuel that level of expansionary zeal, sales will have to be robust in both London and New York, where the company has a similarly large outlet in the Trump Tower.

But, both Mr Ward and Mr Armstrong emphasise that while Asprey is trying to establish itself as a "luxury emporium" with a network of international outlets, it's the Bond Street store that must stand as a cornerstone of the business.

Only in Mayfair, they point out, can you experience the Asprey of old, when the British Empire and a wealthy aristocracy made it one of the most successful retailing stores in the world.

And once you wonder off Mr Foster's central courtyard, the patchwork of period detail, the vintage display cabinets and the emphasis on product lines for rich men's pursuits like shooting, hunting and polo present a seductive world of limitless luxury and sophistication.

None of the bling-bling then of owner's Lawrence Stroll and Silas Chou's, Tommy Hilfiger brand.

In this altogether more rarefied atmosphere, shoppers can gaze at one of Winston Churchill's water paintings in the room where the former British prime minister signed the second World War treaty with former US President Franklin Roosevelt before wondering into a room full of rare and first edition books. In trying to restore some of Asprey's heyday magic, the traditional craftsmen that produce the leather goods and jewellery have also been returned to provide a unique in-house bespoke service.

So the exacting customer can theoretically sift through masses of brightly coloured alligator and lizard skins for an individually designed Asprey handbag on the store's hidden sixth floor where the warren of workshops is housed.

Just down from the animal skins is another leather room, which offers a rare glimpse into the cossetted world of the super-rich. Here a jet-setter has requested to have a leather-bound photo album titled "Summer in the Med 2003" and embossed in gold.

This is a style of retailing that has ebbed away over the last 40 to 50 years, whether it can succeed now in the era of conspicuous wealth is another question.

But the medley of A-class celebrities and British royalty at the launch testify to Asprey's enduring iconic status. And with its wealth of history, London's Asprey deserves to earn at least the same place on the retail tourist map that Harrods and Harvey Nichols enjoy.