THURSDAY, 19 OCT 2017

 

CONNECT

Facebook Linked In Twitter
PwC_22/09-18/10_728x90px
GloriaJeans_266x90px
IMH LTD

Kasoulides: Cyprus Will Claim the Seat of a New EU Agency in the Near Future

Duncan: UK Remains Very Flexible As a Facilitator with UN Regarding Cyprus Issue

IMH LTD
PwC_22/09-18/10_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

UK Treasury: “We Are Leaving the EU and There Will Not Be a Second Referendum”

The Treasury has flatly rejected calls for a second EU referendum after the west’s ...

Huawei Could Overtake Apple in 2018

Apple Inc.’s efforts in the Chinese market may be bested by local competitor ...

Ikea to Start Selling Online on Third-Party Sites

Ikea will start experimenting with selling its famous flatpack furniture through online ...

FROM AROUND GOLDNEWS

   

Duncan: UK Remains Very Flexible As a Facilitator with UN Regarding Cyprus Issue

The Conservative MP for Chipping Barnet in north London Theresa Villiers has used the occasion of a House of Commons session with questions on foreign policy ...
   

Tourist Arrivals Increase 14.8% in September

Tourist arrivals hit new record high in September with an increase of 14.8% compared to the same month of 2016.   On the basis of the results of the ...
   

Kasoulides: Cyprus Will Claim the Seat of a New EU Agency in the Near Future

Cyprus will claim in the future the seat of a new community agency, or a regional office of an existing organization, stated Foreign Minister Mr. Ioannis ...
   

The EU Ready to Take Part in a New Effort for Cyprus Solution

The European Union will be the first to take part in a new effort for a Cyprus solution, a European official has said, noting that the Union`s role during ...
   

Cyprus Company Sells Shares to Goldman Sachs for a Reported $200 Million

Mintha Holding Ltd, a Cyprus-based company, whose beneficiary is the Russian businessman and philanthropist Viktor Rashnikov, sold a 3% stake in its ...
   

Hellenic Bank Group Presents the Brand New Cyprus Fintech Expo

Hellenic Bank Group is presenting the brand new Cyprus FinTech Expo on Wednesday, 8 November 2017 at the Hilton Park Hotel. Nicosia will take center stage ...
   

UK Treasury: “We Are Leaving the EU and There Will Not Be a Second Referendum”

The Treasury has flatly rejected calls for a second EU referendum after the west’s leading economic thinktank, the Organisation for Economic Cooperation ...
   

ECB for NPLs: Cypriot Banks Need to Apply “Additional and Persistent” Efforts

Cypriot banks need to apply “additional and persistent” efforts to wrestle down a stockpile of nonperforming loans (NPLs), the European Central ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
CDB_16/10-16/11_300x250px

IMH LTD