Debenhams signals hard Christmas
DEPARTMENT store chain Debenhams is braced for a tough Christmas as shoppers try to cope with the credit crunch.
“This year has been more challenging than last,” said chief executive Rob Templeman. “We sense the peak season is going to be tough, although Christmas always turns out reasonably OK.”
He said people were changing shopping habits as they coped with tighter household budgets, buying fewer but more expensive items.
“People are trading up. Instead of buying one or two items, they buy just one but spend a bit more.”
That trend is helping Debenhams. Its Designer At Debenhams space includes ranges from Julien McDonald, Jasper Conran and Betty Jackson.
In a trading update before annual results are released, Debenhams reported total sales up 1.3 per cent in the year to the end of August.
Underlying sales, excluding new space, fell 0.9 per cent.
Analysts said the company was gaining market share. Debenhams announced its profits and debt levels would be in line with City forecasts.
The shares fell fp to 42p.