ibusinesslines.com March 22, 2018

Debenhams outlines turnaround strategy with stores set to close

20 April 2017, 04:09 | Jodi Jackson

Debenhams saw profits fall

Boxing Day Sales in London

The announcement came the same day that competitor Marks & Spencer Group Plc unveiled the first details of a five-year program to add dedicated food stores and shut some of its main town-centre sites.

Its overseas arm, which is led by its biggest worldwide business, Magasin du Nord in Denmark, received a boost from the weak pound, with operating profits jumping 12.3 per cent to £26.4m.

In a move that mirrors efforts by its American cousin, Macy's (M), which announced 100 store closures a year ago, Debenhams said it would begin consultations on the shuttering of one central distribution center and around 10 smaller regional warehouses alongside the store closures.

For Debenhams, the move comes as a part of the "Fix The Basics" plan introduced by CEO Sergio Bucher when he joined the company a year ago, reports Sky News.

Underperforming brands will be dropped and it will improve its offer in categories such as fashion accessories and lingerie, while in beauty in has revealed an ambition to create a £1bn business.

Debenhams and Marks & Spencer are adapting to a climate where the growth of convenience stores and online shopping are causing retailers to scale back their traditional town-centre presence.

The group said it will report back with more details on the plans and worldwide markets being eyed for exit in October.

"In order to give us the capability to deliver our strategy, we intend to invest in upgrading our technology platform. We will unify our business via mobile, "mobile @everywhere", to connect with our customers via the device they always have with them", the company said.

"Our customers are changing the way they shop and we are changing too", CEO Sergio Bucher said in a statement Thursday. Shopping with Debenhams should be effortless, reliable and fun whichever channel our customers use.

The department store is looking to boost its online service and rebrand itself as a "destination shop". "For Debenhams customers, the leisure experience is an important part of shopping and mobile interaction growing fast", which provides an opportunity for Debenhams to lead in this category.

Other News

Trending Now

General Election: UK Parliament Approves Theresa May's Snap Vote
Osborne says he's stepping down to focus on his new role as editor of the London Evening Standard. The prime minister told BBC Radio 4's Today she preferred "to get out and about and meet voters".

Fox News addresses O'Reilly exit on air
Bill O'Reilly has lost his job at Fox News Channel following reports that five women had been paid millions of doll. But the New York Times reported that two of the O'Reilly settlements were reached after Ailes left.

Venezuela's opposition vows to keep pressure on Maduro
Foreign governments are also warning about the increasingly bellicose rhetoric and repressive stance of the government. PRESIDENT NICOLAS MADURO, Venezuela (through interpreter): The time for combat has arrived, my fellow patriots.

Baylor hires Linda Livingstone as its first female president
As a private school, most of Baylor's records and its top-level meetings are exempt from the state's public information laws. Before her time there, she served 12 years at Pepperdine as dean of the Graziadio School of Business and Management.

Sporting Gijon vs. Real Madrid live stream
Yannick Carrasco and Thomas Partey both saw penalties saved in the dying embers of Saturday's routine 3-0 win over Osasuna . Not to count out Sporting , but they've beaten Real Madrid just one time in the league since the 1996/97 season.

USA considers restoring North Korea to terror sponsor list
It was the first time a senior USA official has mentioned the possibility of relisting the North as a terrorism sponsor. US Secretary of State Rex Tillerson will chair a Security Council meeting on North Korea's nuclear program April 28.

After scrapping 457 visa, Australia announces tougher citizenship laws
Applicants who fail the test three times will have to wait two years before they can try again - now there is no limit. The government plans on introducing new legislation to revamp the citizenship process by the end of the year.