Store chain still has Fosse Park plans
DEBENHAMS is going ahead with plans for a new multi-million pound branch at Fosse Park, despite the chain’s widely reported financial problems.
The business is continuing talks about the new store in Castle Acres, the £135 million extension to Fosse Park .
It will be one of nine new stores and six food outlets going up on the 12.5-acre former Everards brewery site on the corner of Narborough Road and Soar Valley Way.
Other big name stores moving on to the land will include TK Maxx, Clarks, and a flagship Next store.
It comes despite big problems for many high street retailers which have faced tough competition from online.
Experts had reportedly been called in to discuss the possibility of Debenhams store closures.
The struggling chain, which has seen three profit warnings this year, has already announced plans to axe 90 jobs at its head office and another 320 store management roles. It currently has 240 branches. The news comes after Debenhams chief executive Sergio Bucher said: “The market environment remains challenging and underlying trends deteriorated through the summer months.
“Nevertheless, the product and format improvements we have tested are gaining traction and we are ready to scale up some of our strategic activity ahead of peak.
“Having put in place a leaner operational structure and strong leadership team, and taken action to strengthen our financial position, we are well equipped to navigate these market conditions and take advantage of any trading opportunities that emerge.”
Commenting on the Leicestershire plans, a Debenhams spokeswoman said: “As with all new stores, there is an extensive period of planning and building before we open the doors to customers.
“We are currently working with Fosse Shopping Park owners, The Crown Estate, to finalise plans ahead of the store’s projected opening.”
Debenhams already has a store in Highcross, Leicester, which has just undergone a major refit.
One of the conditions of the new Castle Acres store was that the Leicester branch must stay open for at least five years – to ensure the out-of-town shopping park doesn’t pull shops and shoppers out of the city.