THURSDAY, 17 AUG 2017

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
GloriaJeans_266x90px
IMH LTD

Harris Georgiades Hails Strong Economic Growth

Anastasiades Meets With Turkish Occupied Pyroi Council

IMH LTD
MTN_07/07-10/04_468x60px

INTERNATIONAL

brought to you by CIPA

Debenhams Unveils Its Strategy for Improving Appeal and Online Service

Debenhams Unveils Its Strategy for Improving Appeal and Online Service

Department store group Debenhams has announced a turnaround strategy aimed at boosting its appeal as a "destination" shop and improving its online service.

The plan means up to 10 of its 176 UK stores may be closed over the next five years, BBC reports.

A central distribution warehouse and about 10 smaller warehouses could also be shut.

Meanwhile, the group said its half-year pre-tax profits fell by 6.4% to £88m.

Debenhams shares were down by nearly 5% following the announcement.

Chief executive Sergio Bucher, who joined the company last October, said its customers were changing the way they shopped and therefore Debenhams was also changing.

"We will be a destination for social shopping, with mobile the unifying platform for interacting with our customers," said Mr Bucher, who was appointed with a view to shaking up the business.

Debenhams said that leisure activities accounted for an increasing share of consumer spending and that the "leisure experience is an important part of shopping", while "mobile interaction" was growing fast.

In an effort to capture this market, Debenhams plans to step up investment in its in-store cafes, restaurants and beauty services.

Retail analyst Steve Dresser, of Grocery Insight, said it would be tricky for Debenhams to make its new approach work.

"Without a core reason to visit Debenhams, or a point of difference, footfall and sales fall, which in turn impacts profitability," he said.

"Shopping centre locations overcome footfall concerns, but in turn, rents are expensive."

Debenhams said it had no "tail of loss-makers" in its 176 UK store estate and, in fact, many were "highly profitable".

However, it added, it wanted to "ensure they are fit for the future".

The 10 stores under review for closure, if they are deemed not profitable enough, have not been named.

Debenhams said the rest would be "refreshed" and "remerchandised" to raise their profitability.

In January, it began "decluttering" its stores by reducing the number of lines for sale.

It is also switching about 2,000 of the stores' backroom staff to jobs where they deal directly with customers.

The group also has plans to open four new shops in the UK.

Debenhams has 82 stores in 26 other countries.

It said it would leave some "non-core" international markets, with details due to be announced in October.

The department store chain announced earlier this year that it had begun consulting on the closure of one central distribution centre in Northamptonshire which employs about 200 people.

Debenhams is also consulting on the closure of about 10 smaller regional warehouses which are connected to stores.

Sir Ian Cheshire, the chairman of Debenhams, said "this is a strategy about growth", not job losses, and that the plans should lead to the creation of more jobs.

However, independent retail analyst Nick Bubb said he was "disappointed" that the strategy did not include any targets for sales and profits, despite the talk of growth and efficiency.

MORE ON INTERNATIONAL

Eurostat: Industrial Production Down By 0.6% in Euro Area in June 2017

In June 2017 compared with May 2017, seasonally adjusted industrial production fell by 0. ...

Britain Seeks Brexit without Borders for Northern Ireland

There should be no border posts between Ireland and the British province of Northern ...

German Growth Slows But Remains Robust

Germany's economic growth slowed in the second quarter of the year but remained ...

FROM AROUND GOLDNEWS

   

UK Exporters' Confidence Softens

The British Chambers of Commerce said on Thursday, August 17 that exporters' confidence has softened slightly, due to concerns about currency fluctuations ...
   

Being the Best

Limassol-based Columbia Shipmanagement and Marlow Navigation, two of the largest ship management firms in the world, have announced their intention to ...
   

GOLD Magazine: 80 Leading Law Firms in Cyprus

The Cyprus Bar Association has over 3,000 registered members, many of whom work in more than 220 limited liability law firms throughout the island and, since ...
   

Russia, UK, France and China Express Their Support for a Cyprus Solution

Russia, China, France and the United Kingdom have expressed their support for a solution that would reunify Cyprus, Cyprus News Agency reports.  Their ...
   

Anastasiades Meets With Turkish Occupied Pyroi Council

The Community Council of the Turkish occupied village of Pyroi, in Nicosia district, visited on Wednesday the Presidential Palace and the Parliament and handed ...
   

Eurostat: GDP Up By 0.6% in Euro Area and EU28 in Q2 2017

Seasonally adjusted GDP rose by 0.6% in both the euro area (EA19) and the EU28 during the second quarter of 2017, compared with the previous quarter, according ...
   

Transocean in US$3.4 Bn Songa Takeover

Major offshore drilling contractor Transocean has moved to purchase Cyprus-headquartered Songa Offshore in a US$3.4 billion deal, the two companies announced ...
   

UN: Parties in Cyprus Should Make a Decision on the Way Forward

The parties in Cyprus are in a period of reflection, the United Nations said, adding that the UNSG will make a decision on the way forward in due course. ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Digital_Edition_300x250px

IMH LTD