{"id":160755,"date":"2019-01-10T07:54:58","date_gmt":"2019-01-10T07:54:58","guid":{"rendered":"https:\/\/www.theindustry.fashion\/debenhams-profits-on-track-despite-christmas-sales-drop\/"},"modified":"2021-08-12T13:54:38","modified_gmt":"2021-08-12T13:54:38","slug":"debenhams-profits-on-track-despite-christmas-sales-drop","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/debenhams-profits-on-track-despite-christmas-sales-drop\/","title":{"rendered":"Debenhams profits \"on track\" despite Christmas sales drop"},"content":{"rendered":"
Debenhams has unveiled declining sales over Christmas, but said it is still on track to deliver on profit expectations.<\/p>\n
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The department store saw like-for-like sales dip by -3.4% in the six weeks to 5 January<\/strong>, weighed down by the UK where sales were -3.6% lower due to weaker footfall.<\/p>\n But the group defied predictions from the City that it would issue a profit warning<\/strong> over the period. Digital sales rose 6% in the period, despite a slower start to the peak shopping season.<\/p>\n Chief executive Sergio Bucher said the results were the \u201cbest possible outcome\u201d in an uncertain time for retailers.<\/strong><\/p>\n The company warned that the UK trading environment is still \u201cvolatile\u201d, with savvy consumers actively seeking out discounts.<\/p>\n This will result in some erosion of the retailer\u2019s profit margin<\/strong> in the first half, after it slashed prices to keep up with competitors.<\/p>\n Bucher said: \u201cWe responded to a significant increase in promotional activity<\/strong> in the market, particularly in key seasonal categories, in order to remain competitive for our customers.<\/p>\n \u201cWe have taken decisive steps to maintain rigorous cost and capital discipline<\/strong>, and I am grateful to my colleagues for their hard work as we maintain a rapid pace of change.\u201d<\/p>\n Debenhams has embarked on a major strategic shift, including the shuttering of 50 outlets<\/strong> and the launch of a new store design concept.<\/p>\n The company said on Thursday that the new format stores had outperformed other sites<\/strong>, with the strongest sales increase at Stevenage.<\/p>\n","protected":false},"excerpt":{"rendered":" […]<\/p>\n","protected":false},"author":11,"featured_media":131396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[10585,6,10494],"tags":[13617,3514,7938,11405],"acf":[],"yoast_head":"\n