Debenhams sales grow in face of “challenging markets“
Debenhams has reported resilient sales and progression in 2012 ahead of its full year results on 25th October.
The British retailer announced strong group sales up 2.3% year-on-year, which were accelerated by a focus on UK retail, and the opening up of multi-channel selling.
The last six months were particularly positive, as sales rose 3.3% between March and September in all stores except new openings.
Online sales grew by 40% and showed significant increases when compared with the overall market which increased by 13%.
Debenhams also reported a 50% increase in visits to its website, driven by “extremely strong growth” in traffic from mobile channels.
The store concentrated on branding by improving marketing strategies, with a particular focus on Debenhams’ “Life Made Fabulous” theme, which aims to drive sales and upgrade brand perception.
Debenhams’ Chief executive, Michael Sharp, commented : “I am delighted with our strong performance and the progress we have made in 2012.
“To deliver like?for?like sales growth in these extremely challenging market conditions is highly creditable and we achieved this result by relentlessly focusing on our customers.”
Debenhams has outlined plans to expand its international brand and open up multi-channeled selling by increasing choice and availability of online products .
Mr Sharp continued: “This performance is clear confirmation that our strategy to build a leading international, multi? channel brand is beginning to work.
“It is also evidence of the calibre of the team charged with delivering this strategy and I would like to offer my sincere thanks for the hard work of all 30,000 employees during the year.
“We do not anticipate a significant change in the economic environment in the near future but we expect to continue to make progress in 2013.”
The retailer anticipated rises in pre-tax profits for its upcoming results, while debts are expected to significantly fall after the launch of a “long-term share buyback” scheme.
Last year’s debt of £370m is expected to be reduced by £15m after the initial £20m tranche of the scheme was completed in August.
This was posted in Bdaily's Members' News section by Miranda Dobson .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular morning National email for free.