Debenhams eyes global expansion
DEPARTMENT store Debenhams has vowed to speed up its transformation into a global business after booming demand from the Middle East helped boost annual sales.
Chief executive Michael Sharp said the group, with 62 overseas franchised stores in 24 countries, would open more stores to chase an international department store market worth around £ 324billion. It will open 10 new overseas stores this year with a further 17 set to open in the next three years mainly in the Middle East and Far East. It has a long- term target of 150 stores potentially including China but has ruled out a move into the US.
Sharp said: “We are changing our mindset. We are no longer a UK business with some overseas activity but an international business with origins in the UK. We are focusing on international growth and putting more pace into it. It is a big opportunity.”
International sales in the year to August 31 climbed 3.7 per cent to £ 522million. Overall group sales climbed 2.5 per cent to £ 2.78billion as its new “Life Made Fabulous” campaign helped it gain market share.
Online sales soared 46.2 per cent to £ 366.3million with furniture and consumer electronics doing well.
However group profits fell 2.7 per cent to £ 154million as its 156 UK stores were hit by torrid weather in the fi rsthalf and it booked the cost of modernising its flagship store on Oxford Street, London. The shares fell 9 ¾ p to 101p.
Sharp said it planned to modernise more stores this year including new restaurants to encourage shoppers to stay longer and improve its click and collect services. Shoppers were still struggling with cash he added and predicted a “practical not frivolous” Christmas.
“None of the optimistic consumer confi dence data is being converted into people feeling better off,” said Sharp.
“This Christmas is about buying practical gifts such as coats and jumpers. People are still having fun as knitwear with big owl and robin motifs are selling well.” THE family behind the iconic Dr Martens boot were walking tall yesterday after selling the brand to private equity fi rm Permira for £ 300million.
The Griggses, who owned 91 per cent of the business through parent company R Griggs, promised Permira would respect the boots’ 50- year heritage. They will retain a 20 per cent stake, along with management.
“The brand’s authenticity and the millions of customers who have used Docs as a symbol of self- expression are what makes us unique. Permira respects that,” said chief executive David Suddens who remains in his role.
The Northantsbased business, which has 18 UK stores, hopes to increase international stores from 30 to around 80 and develop online.
Dr Martens were developed from a air- cushioned sole designed by German doctors Klaus Maertens and Herbert Funck. Fans include The Who’s Pete Townshend and model Agyness Deyn, pictured.