Department store Debenhams has been a bit out of favour since Christmas, when chief executive Michael Sharp’s comments on margin spooked some analysts.
Department store Debenhams has been a bit out of favour since Christmas, when chief executive Michael Sharp’s comments on margin spooked some analysts.
But the department store group looked a more attractive option viewed through the bottom of a champagne glass at swanky hotel Claridge’s.
The retailer held one in its series of strategy days there, where trading director Suzanne Harlow and marketing supremo Richard Cristofoli impressed with detailed presentations about steps taken and future ambitions.
Harlow focused on opportunities in casualwear, footwear and home and furniture, as well as increasing revenues from Designers at Debenhams to £750m a year.
Cristofoli highlighted the shift from promotional campaigns to brand building and multichannel aspirations, such as building a single customer view and a shift towards personalised customer communication.
The experience at Debs is similar to that of other retailers - multichannel customers spend more. A multichannel shopper is worth twice as much to Debs as one who only goes into its shops, and three times as much as an online-only customer. Since only 20% of Debs’ store shoppers are multichannel, the scale of opportunity is obvious.
The meeting prompted a flurry of notes. Although there are plenty of buyers, some still remain sceptical. Despite the recent jitters, Debs has generally been well run - Harlow and Cristofoli seem to have added to that impression so the shares may find greater favour.
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