THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Debenhams reports slight rise in like-for-like sales

Debenhams has reported a slight rise in like-for-like sales in recent weeks after the department store refocused its promotional activity to deliver a higher proportion of full price sales.

GENERAL MERCHANDISE

Debenhams reports slight rise in like-for-like sales

Debenhams has reported a slight rise in like-for-like sales in recent weeks after the department store refocused its promotional activity to deliver a higher proportion of full price sales.

In the 14 weeks to 7 June 2014, like-for-like sales edged up 0.7% while group gross transaction value increased by 1.6%.

Debenhams announced back in April that it was planning to revise its promotional strategy to include more clearly defined promotional periods with fewer days on promotion after first half profits dropped by 24.5%.

In an interim management statement issued today, the retailer said more prudent sales targets and tighter buying had enabled it to start refocusing its promotional strategy which has resulted in higher full price sell-through.

Debenhams chief executive Michael Sharp commented: "The foundation of our business is the strength of our product proposition which meets our customers' needs for choice, quality and value. In April we set out five priorities to address the challenges that Debenhams faced in the first half of the year.

“Our performance in the second half reflects the work we have done, particularly to refocus our promotional activity. Although early days, this strategy is delivering higher full price sales and we expect to see the benefit through gross margin progression in the second half of the year and in 2015.”

Debenhams said the rate of decline in UK stores had slowed compared with the first half of the year, helped by a good performance from its flagship Oxford Street store as it traded its first full quarter following a refurbishment. Meanwhile, online sales continued to grow.

The retailer also revealed that sportswear retailer Sports Direct will open two trial concessions in Debenhams stores in Harrow and Southsea during August with the potential for more stores by the end of the year. In addition, coffee brand Costa will launch concessions in the Guildford and Slough stores in June and in the Derby, Exeter, Haverfordwest and Woking shops in July. 

Looking ahead Sharp added: "Whilst it is clear that consumers are aware of improvements in economic indicators, they are not yet seeing a significant improvement in their disposable income. Our outlook for the full year remains unchanged."

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues