Like for like sales fell by 2.2 per cent at Debenhams in its first half, to 3rd March, with EBITDA plunging by 30.6 per cent. The business concurred that it had a disappointing Christmas season which saw it having to discount to match competitors. It did however see a 9.7 per cent rise in online sales but this was nowhere near enough to offset sales lost due to forced store closures during extreme bad weather.
Debenhams CEO, Sergio Bucher said : “A combination of a disappointing Christmas and structural change in the market means it has not been an easy half year. The UK retail environment is undergoing profound change.”
The retail chain has its sights set on reducing the scale of its retail store portfolio via a mix of subletting space to complementary service providers like hair salons and restaurants, streamlining head office teams and potentially also closing stores as leases expire where lower rents cannot be negotiated.
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