Department stores are traditionally the go to destination at Christmas. Vast product ranges mean shoppers can find inspiration for the entire family under one roof.

However, they have had a difficult time of late, and add yo-yoing consumer confidence to the mix and how would the sector fare this Christmas?

Pretty well, we found out today. Perhaps unsurprisingly, John Lewis notched up a 2.7% like-for-like jump over Christmas.

However, more startling was the decent showing from Debenhams and House of Fraser, which notched up 5% and 2.7% like-for-like growth respectively.

The role of department stores

Debenhams’ new chief executive Sergio Bucher was asked today if there was still a place for department stores in the digital world.

The beauty of a department store is the wealth of brands and products found under one roof. But now the internet is one giant roof under which a seemingly unlimited amount of products can be found at the click of a button.

Bucher, who recently joined Debenhams from Amazon, said, perhaps predictably, that there was life in the old dog yet.

“If I didn’t believe in the future of department stores, I wouldn’t have joined Debs”

Sergio Bucher, chief executive, Debenhams

“If I didn’t believe in the future of department stores, I wouldn’t have joined Debs,” he insisted.

So, what does the future hold? Bucher, who is due to unveil his grand strategy in April, played his cards close to his chest, but suggested that the answer lies in both experience and convenience.

Department stores are, of course, generating lots of growth from their own online channels – all three major players achieved impressive numbers over Christmas – however, the convenience point Bucher referred to was plain to see as shoppers opted to click-and-collect this Christmas.

This method accounted for 52% of John Lewis’ online sales and 31% of Debenhams’.

There were also signs that shoppers were embracing the experience aspect of the department store at Christmas. In the face of growing online sales, both John Lewis and Debenhams reported growing store sales over the festive period.

The pair, along with HoF, heralded the success of their multichannel propositions and all in the industry will seek to reap the rewards from bricks-and-clicks going forward.

Resetting product expectations

Debenhams put its Christmas sales rise down to a strategic move away from the challenging fashion sector. Non-clothing jumped from 52% to 57% of its mix over the festive period.

It seems a smart move: Kantar Worldpanel revealed this morning that fashion market sales fell 2% in the year to December 18, its biggest decline since August 2009.

However, both John Lewis, traditionally known for its strength in home and electricals, and Marks & Spencer, a perennial laggard in terms of fashion sales, notched up growth in the category.

Meanwhile, Debenhams is vying to grab some of BHS’ share in lighting with a push into that category.

The UK’s department store chains are primed to reset shopper expectations as they pursue growth in the year ahead.

Trouble ahead

Despite the good showing over Christmas, department store owners echoed the rest of the industry with warnings on what 2017 holds.

Currency headwinds are “like a dog that hasn’t barked” yet

Charlie Mayfield, John Lewis Partnership chairman

John Lewis Partnership chairman Charlie Mayfield said the coming year would bring multiple challenges for retailers, and that currency headwinds were like “a dog that hasn’t really barked” yet.

HoF chairman Frank Slevin said he anticipated a challenging year ahead.

It may have been a good Christmas but the champagne remains firmly on ice ahead of what is likely to be a bumpy ride.