Franchising, retail, business
19/06/2014
Debenhams has confirmed it will sell products from Sports Direct and Costa from in-store concessions.
The news was revealed in a statement by the company as it revealed its first quarter sales figures.
Costa will launch concessions in six stores in July while Sports Direct will open two sport departments in its Harrow and Southsea stores in August.
John Baker, director of food services at Debenhams, commented: “Growing our food hospitality business is an important part of our strategy to improve the return on our UK stores through a wider choice of products and brands. Partnering with Costa will only enhance our appeal,” he insisted.
Following poor Christmas sales, Debenhams concluded that 10 per cent of its floor space – 1m sq ft - could be more profitable by introducing new brands and services. Group like-for-like sales inched up 0.7 per cent in the 14 weeks to June 7 but it has endured a tough 12 months of trading. It fell short of its Christmas sales target and lost its chief financial officer in January.
Online sales jumped 10 per cent over the 14 weeks to June 7.
Michael Sharp, chief executive said he planned to reduce discount sales and roll out a wider range of premium delivery options by this Christmas. He added that the firm was ramping up its UK logistics capability with click and collect expected to launch by the end of 2014.
“It is clear that Debenhams is fighting many battles on many fronts, with the retailer likely to remain under considerable pressure for the foreseeable future,” commented Anusha Couttigane, fashion consultant at Conlumino.
By: retailgazette.co.uk
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