Debenhams unveils turnaround strategy

Image copyright Reuters

Department store group Debenhams has announced a turnaround strategy aimed at boosting its appeal as a "destination" shop and improving its online offering.

The plan includes a review of up to ten of its 165 UK stores for possible closure over the next five years.

Debenhams saw half-year pre-tax profits fall by 6.4% to £87.8m.

Chief executive Sergio Bucher said customers were changing the way they shop and Debenhams was also changing.

"We will be a destination for 'social shopping with mobile the unifying platform for interacting with our customers," he said.

Debenhams said that leisure activities account for an increasing share of consumer spending and that the "leisure experience is an important part of shopping" while "mobile interaction" is growing fast.

However independent retail analyst Nick Bubb said he was "disappointed" that the strategy did not include any targets for sales and profits, despite the talk of growth and efficiency.

Debenhams has 240 stores in 27 countries.


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