Debenhams announces turnaround strategy
British multinational retailer Debenhams unveils plans that will see a number of stores and warehouses facing closure
British multinational retailer Debenhams has announced a turnaround strategy aimed at boosting its appeal as a destination shop and improving its online offering.
The department store, which saw its half-year pre-tax profits fall by 6.4 per cent to £87.8m, has announced a plan that includes a review of up to 10 of its 165 UK stores for possible closure over the next five years, as well as closure of a central distribution warehouse and some 10 smaller warehouses.
Debenhams currently has 240 stores in 27 countries.
Such plans were in response to the way customers are changing the way they shop Debenhams chief executive Sergio Bucher told bbc.co.uk.
“We will be a destination for social shopping, with mobile the unifying platform for interacting with our customers,” says Sergio.
Debenhams say 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” was growing fast.
In order to capture this market, Debenhams plans to step up investment in in-store cafes, restaurants and beauty services.