A STRATEGY of increasing own-brand selling space has cost department store chain Debenhams sales.
The group, which opened its first city store in Liverpool One two years ago, said its bid to improve gross margins through own-brand goods and stronger comparative figures from the third quarter of 2009 were behind a 0.4% fall in like-for-like revenues over the 42 weeks to June 19, and a 1.5% decline in the first six weeks of the second half of its financial year.
But in a trading update yesterday chief executive Rob Templeman said: “We are pleased with the performance of the business so far this year.”
In contrast, Liverpool stockbroker Panmure Gordon described the update as “disappointing” after predicting much smaller like- for-like sales declines of between 0.2% and 0.3%.
A new store was opened in Carmarthen, taking the Debenhams portfolio to 146 stores, and one more opening is planned before the end of the financial year in Bury.
Six international franchises were also opened.
