Member Article

Debenhams sales rocket after discount increases

British retailer Debenhams experienced its highest ever sales in December, after the company increased its discounts and promotional activity for the festive period.

Like-for-like sales were up by 5% in the five weeks up to 5th January, while online sales outstretched the store’s expectations, with a 39% rise in the past 18 weeks compared with the same period in 2011.

The store, which carries an extensive range of high street designer brands such as Rocha John Rocha and “H” by Henry Holland, said the sales had “good momentum” in the run up to Christmas.

Sale volumes were met by a 3.5% increase in transaction value in the 18 week period, while sales across the Debenhams group grew by 2.9%.

Stores on the UK high street have shown much more promotional activity, Debenhams said, after predictions that consumers would be looking for bargains ahead of Christmas and in the traditional sale period.

The retailer said stock levels were “firmly under control”, and terminal stock would be in line with standard averages of between 2.5 and 3%.

Michael Sharp, chief executive of Debenhams, said: “I am pleased with our performance in the first four months of our financial year.

“The trading environment was extremely challenging but we focused on meeting the needs of our customers and executing the four pillars of our strategy.

“We continue to believe that whilst consumers have become acclimatised to the new economic reality, we don’t anticipate a significant change in consumer confidence in the remainder of the year.

“We remain committed to prudent investment in key areas of the business to deliver long-term sustainable growth as well as driving shareholder value.”

The company pledged to focus on its UK retail division ahead of 17 planned store openings, with five openings in January alone.

Debenhams also said its plans to grow its international presence with 150 new stores in the next five years were on track, with five new stores already open during the last 18 weeks.

This was posted in Bdaily's Members' News section by Miranda Dobson .