Department store group Debenhams revealed a healthy rise in full-year profits this week, while like-for-likes grew 2.1%.

Much of the attention focused on the revelation that chief executive Michael Sharp plans to stand down at an unspecified time next year. However, here we look at how Sharp has been helping turn the business around and where it is seeing success:

Sales growth is coming from online, driven by mobile

Debenhams saw online sales reach 11.4% in the year and now represent 13.6% of group sales. Earnings from online jumped 11.5%.

Mobile is helping drive sales with the channel accounting for around 40% of online sales.

Click-and-collect represents 26% of Debenhams’ UK online orders. Customers can now order up to 9pm for next-day click-and-collect. Online orders can be placed until up to midnight for next-day delivery.

International helping boost sales

The retailer now has 70 franchised stores and operates in more than 60 countries.

debenhams.com

debenhams.com

It plans to grow its business to around a third of group sales and will open 11 new franchise stores over the next three years.

To help this, Debenhams has launched a new international website which will feature local languages and prices in local currency.

It is also launching in Australia through a joint venture with Pepkor SE Asia, a subsidiary of Steinhoff Group, and has struck a distribution agreement for selected Debenhams brands with Vietnam’s VinGroup.

Upping focus on full-price sales, cutting down on promotion days

Debenhams revealed that it has had 42 fewer days of promotion on items in the last 18 months and 17 fewer days of promotion in the current financial year. The retailer says it is planning sales “prudently” and as a result is gaining market share in clothing.

Bidding to make better use of its UK retail space

Debenhams is aiming to “optimise” around 1m sq ft of its UK retail store space as it introduces more restaurant and cafe concessions. It has also been bringing in other retailers as concessions and so far has eight Sports Direct concessions across stores, with eight more planned by next August.

“The relationship with Sports Direct is good and there’s an opportunity to grow it,” said outgoing Debenhams boss Michael Sharp.

Debenhams is shrugging off the impact of the Living Wage

Matt Smith, chief financial officer, said the cost increase from the new minimum wage was being factored in and that there is “no plans” to raise its prices because of the extra wage bill. The stance is in contrast to its rival Next, which has said it will raise prices as a result of George Osborne’s living wage, which takes effect next April.