Sales dropped and profits headed downwards fast in the first half for Debenhams, but its international ops were stronger and its revamp strategy is showing early good results, although there's still a lot of work to do.
Debenhams profits dropped in the latest year but the big news was around its rebirth plan that includes a new designer signing, in-store gyms, soaring mobile sales, making its Danish chain a Scandi hub and much more.
Debenhams' trading update paints a picture of a market that's tough and a turnaround plan that's still a work in progress. Sales have slowed recently, even online, but a beauty focus and its new Preen offer look strong.
Debenhams profits may have dropped in H1 but the real news was its future strategy with a new focus on m-commerce, social shopping, beauty, lingerie, footwear and accessoriss, plus plans to shut some stores & warehouses.
British fashion retailers will switch their spending firepower to technology from the high street in 2017 after online shopping became the key driver of sales growth over the all-important festive period.
"Beauty and gifts support good Christmas performance” was the subject line of Debenhams' trading update Thursday, echoing what it has said recently about key growth areas as it cuts its reliance on volatile clothing.
Debenhams is axing or reducing some of its designer ranges under the direction of new CEO Sergio Bucher, according to a UK press report. A newspaper said Betty Jackson will be dropped and Jeff Banks cut back.
Debenhams, Britain's second-largest department store group, on Thursday named Sergio Bucher, an executive at Amazon's fashion business, as chief executive, attracted by his online and international experience.