Quick Enquiry
Profitable Debenhams announces plans for 17 new stores

Department store chain Debenhams has announced plans to open 17 new stores as it defied the gloom on the high street by reporting a 4.2% rise in pre-tax profits. Opulentus UKThe UK's second-largest department store group, behind John Lewis, said on Thursday that the new premises will take its British estate to 171 shops and allow it to hire an extra 1,700 people. The expansion plan is part of the chain's commitment to "reinvigorating the British high street", and builds on nine new store openings last year. The company is also in the process of modernizing its existing tired-looking stores. Chief executive Michael Sharp said that retailers were battling against a "very difficult market", but that Debenhams, which reported full-year pre-tax profits of £158.3m, expects to continue bucking the trend. Its shares, which have risen by 59% over the past year, were up 9.5% to 119.3p by mid-afternoon on Thursday. "We believe that customers are acclimatized to the new economic reality," he said. "While we don't anticipate a significant change in the economic environment in 2013, we expect to make further progress during the year." Debenhams said tie-ups with fashion designers Henry Holland and Julien MacDonald had helped the retailer gain a greater share of the highly competitive women’ s wear market. The retailer is also pushing ahead with its overseas expansion and increased its target for new foreign franchise store openings from 130 to 150, with a particular focus on the Middle East and Asia. Debenhams also benefited from booming online sales, with internet revenue up 40% on last year to £250.6m, prompting it to increase its online target to £500m-£600m. The news came as internet-online fashion retailer Asos reported a 40% rise in annual profits to £44.5m. The company, which claims to be the world's most viewed fashion website by 15-to-34-year-olds, said sales grew by 64% at its international sites in the US, Australia, Germany, France, Italy and Spain. UK sales, where the company is more established, increased by 10%. Nick Robertson, Asos's chief executive, said the company would open local-language sites for Russia and China next year. Asos's shares, which have almost doubled over the past year, were 5.4% down to £23.59 by mid-afternoon on Thursday. Source:  http://www.guardian.co.uk/business/2012/oct/25/debenhams-announces-plans-17-new-stores?newsfeed=true

Share your Comments
Please Login to view/submit Comments & Replys