Debenham’s sales growth slows down

Debenham’s sales growth slows down due to volatile UK market and unreasonably cold spring.

07:29 29 June 2013

 

Debenhams have announced on Thursday that their like-for-like sales in the 16 weeks to June 22 were flat. However, same-store sales for the past 42 weeks rose by 2.1 per cent. The unreasonably cold temperature in spring and volatile UK market were blamed for slower sales growth. 

 

However, Debenhams chief executive Michael Sharp, said that the company’s sale from its online division is doing pretty well. The sales rose by 40per cent for the last four months. This now accounts for 14per cent of the company’s total revenue. 

 

Although sales growth have slowed down, pre-tax profits remained in line with current market expectations of around £153m reflecting strong focus on stocks, margins, and costs. 

 

"Debenhams has delivered a robust performance, continuing to grow market share in our key categories in a challenging and volatile period," said Mr Sharp.

 

It can be remembered that in April, Debenhams have confirmed that for the first time in the history of the company, its online business became more profitable compared to its stores. This demonstrates a shift in the retail industry towards e-commerce.