Debenhams issues a first-half trading update on Tuesday ahead of next month’s interim results.

Debenhams issues a first-half trading update on Tuesday ahead of next month’s interim results. The retailer has been one of the winners during torrid trading conditions and managed a like-for-like sales uplift over Christmas and has maintained margin.

Debs’ Christmas trading statement of course carried the obligatory cautious comments about prospects, but management was confident about the outlook.

The retailer’s seemingly permanent promotions worry some in the City, but they have chimed well with the consumer mindset and have been managed consummately to win shopper spend while maximising margin. There is little reason to doubt the formula.

Debenhams has stepped up to the digital plate. Online sales surged almost 35% over Christmas and last year the retailer unveiled a host of initiatives such as mobile shopping apps and in-store kiosks which doubled the product range available in an average store. Debenhams is developing the right multichannel mix to keep it on the front foot in future.

The Morrisons experience

Morrisons chief executive Dalton Philips sees his stores as his biggest asset and is concentrating on the in-store experience. His rationale is that a bit of street-market style theatre and service can make the weekly food shop a pleasure rather than a chore. As competitors such as Tesco devote more energy to in-store initiatives, Philips appears to have a point. Last week’s full-year results, showing a profits rise, lend credibility to his strategy.

Some in the City are concerned that Morrisons’ rate of growth is slowing. While an analysts’ visit to a pilot store in St Albans on Monday left brokers such as Nomura impressed, others want to see Morrisons move faster with roll-out and in areas such as convenience. Morrisons has executed initiatives well, but the grocer cannot afford to let rivals learn the lessons and eat its lunch.