Debenhams is launching lighting departments in 30 stores this season and aiming to launch 30 more next year as it tries to take control of a market once led by BHS.
The department store said it had hired BHS’s lighting buying team since the retailer went bust earlier this year as part of its efforts to boost its homeware department to offset falling clothing sales.
Clothing made up less than half of Debenhams sales for the first time in the year to 3 September as unseasonal weather hit sales. In contrast, it has recorded strong growth in beauty products, homeware and in its dining areas.
Total sales rose 1.3% to £2.89bn in the year to 3 September as new store openings in the UK and growth online offset a 1.1% decline in sales at established outlets.
Pre-tax profits slid 10.4% to £101.7m as a result of £12.4m of one-off costs relating to job cuts at the group’s head office, bankruptcy proceedings at its Irish chain and an IT update.
Sir Ian Cheshire, the chairman of Debenhams, said the group’s performance in a difficult market had been “resilient” and that its new boss, Sergio Bucher, who joined from Amazon this month, would be looking at how to evolve the business into a “department store for the 21st century”. He said clothing sales now accounted for 48% of the group’s total, compared with 50% a year ago.
Cheshire said the “pot of cash” that shoppers once spent in BHS would now be distributed elsewhere. But he said the crossover in shoppers at the two chains was less significant than people might think. “It’s part of the background noise in trading, but its not a straight line that they have shut and we will benefit,” he said.
Retailers are scrapping for market share in a tough environment where shoppers appear to be switching from spending on clothing to paying for experiences such as holidays and eating out.
Debenhams’ clothing sales fell by slightly less than the 4% seen across the market in the past six months as growth in holiday clothing, including swimwear, and outfits for special occasions rose while everyday clothing sales slid.
“Maybe gone are the days of just buying. You have got to really want something to buy,” said Suzanne Harlow, the group’s trading director, who has been running the business since former chief executive Michael Sharp stepped down this spring. “I don’t think it’s just about the weather,” she said.
Apart from expanding its homeware ranges, Debenhams is adapting to the changing market by improving its beauty halls with new, exclusive brands such as Kat Von D and putting in new eateries such as Patisserie Valerie and Costa Coffee. Food sales were up 13% over the year; Debenhams said it would have 50 third-party cafes and restaurants in its stores by the end of this year.