Strategy hits Debenhams sales
Department store chain Debenhams said moves to bring forward promotions such as its new season spectacular left sales flat in its third quarter.
The retailer, which has 161 UK stores and more than 240 outlets worldwide including Ireland, said moves to overhaul its promotional strategy as it attempts to cut back on sales and special offers reduced same store sales by around 1% over the 15 weeks to June 13.
Debenhams shifted many of its promotions into the group’s first half and said its new strategy saw three fewer days of special offers in the latest quarter.
It also heralded a 16.7% hike in online sales – up from 12.7% in the first half - after the group lowered delivery charges and improved its website.
Despite the failure to grow like-for-like sales in the third quarter, chief executive Michael Sharp said the firm had made “good progress” on its plans.
He said: “During this period we have continued to focus our promotional activity around the events Debenhams is famous for; we have made further improvements to our multi-channel proposition, including more competitive delivery charges; we have commenced further space trials with a number of exciting new partnerships; and have seen continued progress in our international operations.”
But he added: “Our customers tell us that, whilst they recognise the improving economic background, they remain cautious in their spending.”
