Debenhams like-for likes fell 0.7 per cent in the six months to March 1, but Templeman was cautiously optimistic about the sector in the short term.
“I think there will be some upside in the summer,” he said, citing poor comparatives after last year’s floods and tumbling interest rates in the US. However, he warned: “Sales are very volatile. There is no clear trend.”
Templeman added that Debenhams plans to shake up its brands. It is to reduce stock options by between 10 and 15 per cent through the consolidation of own-label brands, and plans to expand its key Designers at Debenhams ranges.
Templeman said the decision reflects consumers’ desire to trade up to quality items during the credit squeeze and the need to create “fresh air” around brands for a better shopping experience.
The square footage of its Julien Macdonald Designers at Debenhams range will increase by between 50 and 70 per cent for its autumn collection.
The Betty Jackson and Jasper Conran ranges will be introduced in more stores and all the Designers collections will be expanded to include full lines from casual- to formalwear. The retailer will drop its John Richmond range and some of its smaller lines.
Templeman said own-label is “significantly” outselling concessions, but denied there was a strategy to remove concessions.
“In new stores, we will maximise all own-bought space before putting in concessions,” he added.
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