SATURDAY, 24 FEB 2018

 

CONNECT

Facebook Linked In Twitter
Chinese_Edition_13/02-15/04_728x90px
GloriaJeans_266x90px
IMH LTD

René Troccaz: Developments in Cyprus’ EEZ Concern the Whole of the EU

New Safety Requirements for Coastal Passenger Vessels Enter into Force

IMH LTD
PwC_02/02_23/02_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

Barclays Reports Rise in Annual Profits

Barclays has reported a 10% rise in annual pre-tax profit to £3.5bn. The bank was ...

BP: World Oil Consumption Will Peak in Late 2030s

Global oil consumption is likely to peak in the late 2030s according to a forecast ...

Volkswagen Lifts German Workers Wages By 4.3 Percent

Carmaker Volkswagen agreed to raise the wages of more than 120,000 workers in Germany by ...

FROM AROUND GOLDNEWS

   

CBC: Investment Funds Assets Increase by €700M

The total assets of investment funds increased by approximately €700 mn on a quarterly basis, reaching a historically high level, according to data ...
   

Electric Powered Mini Cars to be Built in China

Electric-powered Mini cars are to be built in China, as well as in Oxford where most Mini cars are currently made. BMW, the owner of the Mini brand, said it ...
   

Cyta Obtains Exclusive Champions League/Europa League TV Rights

Cyta has obtained the exclusive TV broadcasting rights for the UEFA Champions League and UEFA Europa League for the three-season 2018-2021 period. Cyta was ...
   

DP World Limassol Prepares For Leading Role in Oil & Gas Trade

The role of Cyprus as a maritime, energy and logistics hub was discussed by global shipping industry executives and experts during the 2nd Annual Capital Link ...
   

New Safety Requirements for Coastal Passenger Vessels Enter into Force

Article 47A of the Merchant Shipping (Issue and Recognition of Certificates and Marine Training) Laws of 2008 and 2017, which took effect on January 1 2008, ...
   

RBS Records Profit for First Time in Ten Years

Royal Bank of Scotland has returned to profit for the first time in a decade as it continues its recovery. Chief executive Ross McEwan told the BBC it was ...
   

René Troccaz: Developments in Cyprus’ EEZ Concern the Whole of the EU

Developments in Cyprus’ Exclusive Economic Zone (EEZ) is an issue that concerns the whole of the EU, French Ambassador to Cyprus René Troccaz has ...
   

ENI: Digital Transformation with the Launch of HPC4 Supercomputer

Eni has entered a crucial phase in its process of strategic digitalisation - with 150 projects cutting across all business areas and involving over 150 ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Antifraud_30/01-14/03_300x250px
Gold_Issue_300x250px

IMH LTD