Partly Cloudy

Partly Cloudy

max temp: 8°C

min temp: 4°C

ESTD 1874 Search

Retail: Debenhams to ‘refocus’ its promotional strategy after 24% fall in first-half profits

09:07 15 April 2014

Debenhams is in discussions to introduce a number of "well-known" brands into its shops as it aims to bounce back from poor trading in the key Christmas period.

Debenhams is in discussions to introduce a number of "well-known" brands into its shops as it aims to bounce back from poor trading in the key Christmas period.

Debenhams today pledged to refocus its promotional strategy after a disastrous Christmas trading performance led to a sharp fall in half-year profits.

shares

The department store chain, which has 158 outlets in the UK, will also look to speed up delivery times in its online operation and said it is in discussions to introduce a number of “well-known” brands into its shops.

The moves, outlined by chief executive Michael Sharp, follow a “challenging” period in which profits fell 24.5% to £85.2million in the 26 weeks to March 1.

Debenhams alerted the City to a slide in profits on New Year’s Eve after weak trading in September and October and poor sales in clothing was compounded by a difficult festive period as rivals engaged in a price war.

The company said today: “Promotions are a traditional strength of Debenhams but in the run-up to Christmas their impact was diluted by the highly promotional trading environment in the UK.

“We are therefore refocusing our promotional strategy which will see more clearly defined promotional periods in the trading calendar with fewer days on promotion.”

Debenhams said it also trailed behind its rivals in terms of convenience because it lacked a competitive range of premium delivery options.

It has pledged to improve in this area in time for Christmas, with next-day click and collect and a 10pm cut-off for next-day delivery. This has required a step-up in spending on automation in its distribution centres.

The company said analysis of all of its shops found that 10% of its UK store space was currently under-performing.

It said: “We continue to work on a number of routes to improve sales densities. These include adding more choice of products, brands and services.

“We are currently in discussions with a number of well-known brands, some of which are expected to be trialled over the next six months.”

shares

1 comment

  • Like all big retailers they have got into the trap of giving big discounts at times though out the year so people wait till then to buy, prices are high before the so called event ,sale,or weekend specials,then go to what you would expect to pay for item, Sainsburys is the same on clothes every bank holiday 20% off ,so if I want a shirt or something else I wait till then.

    Report this comment

    pandy

    Tuesday, April 15, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Macmillan has been adopted by builders' merchant chain Ridgeons as its chosen charity until the end of 2017.

Regional timber and builders merchant chain Ridgeons has raised £15,254 in the first year of its two-year partnership with Macmillan Cancer Support.

Charity evening on the ice at Winter Wondeland in Colchester

Suppliers, small businesses and individuals have “little chance” of getting any of the quarter of a million pounds they are owed from the collapse of Colchester’s outdoor ice rink.

Keith Norman, Fred. Olsen Cruise Lines’ business development manager (back row, centre) launches the company'’s sponsorship of Suffolk FA’s Walking Football initiative at Whitton Sports Centre in Ipswich.

Fred. Olsen Cruise Lines has become a sponsor of Suffolk FA’s Walking Football initiative.

Sam Parnell and Max Shelley of Measured Brilliance

Digital Marketing ‘meetup’ group SIMS teams up with Measured Brilliance and Ipswich Borough Council to help businesses in 2016.

developer John Howard

Town centre homes plans for important Ipswich town centre site close to the Waterfront

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View
HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24