Department store group Debenhams has added just one further store to its development pipeline, reflecting the cautious mood of the retail sector.
Delivering a stock market update for the 16 weeks to 23 June, the company said it had added a single further store to its development pipeline, which stands at 14 stores now expected to open over the next five years.
Debenhams opened one new 24,000 sq ft store in Dumfries in the period.
The group is also undertaking a series of store upgrades with nine upgrades completed in early June. Work has begun on another nine stores which will be finished by the end of September. Preliminary work has started on the Oxford Street branch and is due to run until October 2013.
Like-for- like sales were up by 3.1% in the period to 23 June and up by 1.2% since 4 September.
Michael Sharp, Debenhams’ chief executive, said: “We have continued to make good progress and I am particularly pleased with the like-for-like sales trends in the second half of the year. Debenhams has again demonstrated the efficacy of our strategy to build a leading international, multi-channel brand and our ability to trade well in difficult market conditions, as well as the inherent strength of the department store model.
“Looking forward, there is little sign of an imminent recovery in consumer confidence. Our focus for the remainder of this financial year and into next year will therefore be the remorseless execution of the four pillars of our strategy, which we believe will bring success irrespective of the wider economy.”
jack.sidders@estatesgazette.com
