Whittard, founded in London in 1886, is best known for tea but also sells coffee, hot chocolate and other gifts.
It has been in Oxford High Street close to one of the entrances of the Covered Market.
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But its High Street store is to close in January and a new Whittard shop has now opened in Queen Street.
Manager Martin Lee said customers were enjoying a visit to the new store.
He said: “It’s laid out very nicely and people actually think it’s bigger than the High Street store.
“We want people to come in and try some of our teas and hopefully once they have tried the tea they will buy it.
“Perhaps people are more used to going into coffee shops but I think at home typically people drink tea.”
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Mr Lee said tea bags and loose leaf tea are both on sale, with the loose leaf version offering more “depth of flavour”.
Teas on sale include smoke-flavoured Lapsang Souchong, Orange Pekoe, and Milk Oolong – a tea that has a milky flavour without the need to add milk.
The Whittard store in High Street is closing before redevelopment work gets under way.
All Souls College has put forward a planning application with Oxford City Council to upgrade 10-15 High Street.
It is not yet known if Whittard will return to the High Street in future to continue competing with Bird & Blend Tea Company in the same street.
Whittard of Chelsea has been trading for well over a century.
Walter Whittard took a job with a tea trader in London and then eight years later – aged just 25 – he opened his own shop in Fleet Street.
The company says: “In those early days the walls would have been lined with huge tea caddies, and filled with the scent of roasting coffee.
“Walter insisted on blending his tea and roasting his coffee on site. He also had a keen eye for a marketing opportunity, and targeted the nearby law courts by describing his tea as The Barrister’s Refresher.”
The company adds: “In 1935 Walter died, and the business fell to his sons Dick and Hugh.
“After Whittard lost its warehouse to the Blitz, Dick and Hugh quickly set about finding a new warehouse nearby.
“It wasn’t long before they decided to up sticks and move their entire business – the shop, headquarters, warehouse and coffee roastery – to Chelsea, settling on a rather grand-looking building at 111 Fulham Road.”
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Andy is the Trade and Tourism reporter for the Oxford Mail and you can sign up to his newsletters for free here.
He joined the team more than 20 years ago and he covers community news across Oxfordshire.
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