Debenhams like-for-likes up 2% as online sales soar

Debenhams revealed online sales soared 46.2% in the period, while online market share increased 50 bps.  

The department store retailer said it had continued to gain market share in clothing, footwear and accessories, which were up 30 bps in the 12 weeks to August 4.

It recorded a 2.5% lift in gross transaction value across the year.

Meanwhile, sales were boosted by the good weather over the past 10 weeks, as it recorded a 1.9% like-for-like increase.

Debenhams is expected to achieve profit before tax within current market expectations.

Debenhams chief executive Michael Sharp said: “We have succeeded in growing both like-for-like sales and market share in a competitive market where consumers’ disposable income remains under pressure. I am particularly pleased with the growth of our online business.

Sharp added: “While the return to more seasonal weather conditions over the summer has been helpful, the main factor behind this performance has been the relentless focus of everyone at Debenhams on implementing the four pillars of our strategy to create a leading international, multichannel brand.”

Sharp is driving through a four-pillared strategy focusing on UK retail, delivering a compelling customer proposition, multichannel and growing the brand internationally.

In the year Debenhams modernised 12 stores and it said the Oxford Street flagship revamp is “on time and on budget”.

Debenhams said its franchise stores overseas performed “well” in the second half of the year after it closed a number of stores in the first half of the year. Magasin du Nord peformed strongly with like-for-like sales up 7.2% in DKK and 6% in GBP for the 52 weeks.