Debenhams takes the plunge with makeover

New chief executive Sergio Bucher insisted the department store must become a destination for “social shopping” to tap into the rise in leisure spending by consumers who “increasingly live their lives through their mobile phones”. 

He signalled the closure of 11 warehouses and said up to 10 UK stores could close over the next five years. 

Some brands could disappear and the group could exit some international markets. Stores will be “decluttered” after some customers likened their shopping experience in some branches to a “treasure hunt”, stock replenished more quickly and about 2,000 more staff switched to dealing directly with customers to boost service standards. 

More in-store beauty makeovers will be added. Annual capital spending will increase by £20million to £150million between 2018 and 2020, while exceptional costs over the next four years will be £50million. 

Bucher said: “Our customers are changing the way they shop and we are changing too. Shopping with Debenhams should be effortless, reliable and fun whichever channel our customers use. 

“We will be a destination for ‘social shopping’ with mobile the unifying platform for interacting with our customers. 

“If we deliver differentiated and distinctive brands, services and experience both online and in stores, our customers will visit us more frequently and, having simplified our operations to make us more efficient, we will be able to serve them better and make better use of our resources. 

“Customers tell us we sometimes make it hard work for them to shop with us and we need to serve them better.” 

The overhaul was announced alongside half-year figures showing a 6.4 per cent drop in pretax profit to £87.8million on 2.9 per cent higher revenue of £1.67billion. 

Peel Hunt analyst John Stevenson said: “The market will remain sceptical until there is clear evidence of the changes taking hold.” Debenhams shares fell 2¾p to 52½p.