Debenhams on track despite flat like-for-like sales
Debenhams has reported flat like-for-like sales in the 15 weeks to 13 June as sales were diluted after the retailer brought forward its promotional period into the first half of the financial year.
Group gross transaction value edged up 0.4%.
Meanwhile, like-for-like sales rose by 0.9% in the 41 weeks to 13 June with group gross transaction value growing by 1.7%.
The retailer said it made further progress in its strategy to drive full price sales by making continuing adjustments to the promotional calendar, with three days less on promotion in the 15 week period.
Online sales increased by 16.7% in the 15 weeks and by 13.9% in the 41 week period.
Debenhams chief executive Michael Sharp said: “We have made good progress on our strategic priorities, and remain on track to deliver results in line with market expectations.
“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, with another strong performance from Magasin.”
Concession trials with new partners included Patisserie Valerie, Chi Kitchen and BHS lighting. The retailer is also due to open five new stores in the autumn in Bradford, Wandsworth, Rugby, Beverley and Newport.
Debenhams said it is on track to achieve its full year profit expectations.
Sharp added: “Our customers tell us that, whilst they recognise the improving economic background, they remain cautious in their spending. Our wide product choice, clear destination departments and improving service proposition gives us a strong platform from which to deliver long term sustainable growth.”
