Focusing on UK retail Improving and widening the reach of the brand in the UK
5.8% average sales increase after modernisation
350UK jobs created in new stores in 2011
17% average ROCE of 2010 and 2011 modernisations
3,000 UK jobs created in new stores over past 5 years
Focusing on UK retail
Although Debenhams has been in existence for over 230 years, its UK store footprint is still relatively small compared with its largest competitors.
Debenhams operates 163 stores in the UK and Ireland of which 141 are full department stores, with an average space of 75,000 sq ft. and 22 small format stores, all of which are below 25,000 sq ft. We believe there is demand for up to 240 stores. One of the strengths of the Debenhams model is that we can tailor store sizes to suit local market conditions and can generate strong returns from all sizes of store.
Although new store opportunities have been limited over the past two years and will continue to be so in 2012 when only the resited Newbury store will open, the property market is beginning to improve. Further out, we are contracted to open nine new stores over the next five years, with the first scheduled to open in 2013. They will collectively add nearly 435,000 sq ft of new trading space. Nearly 30 more new store opportunities are under discussion.
New stores are only one part of the picture. All of the 45 UK core stores will be modernised during the next two years (see more about the modernisation programme here). And we are not waiting for modernisation to take place to start to improve the performance of these stores.
Improving and widening the reach of the brand in the UK
- Improving UK core stores
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We use the term core store to describe an older store that is awaiting modernisation. We have committed to modernise all of these stores by the end of 2013. However there are many things we can do to improve the performance ahead of modernisation by focusing on key retailing principles. This is a question of focus, not of additional cost or capital spend. We review the management team and determine any training needs across the store. We replace choice that may have been lost through recent concession closures. We improve presentation standards. We optimise the space to increase its productivity. And we ensure that costs, margins and stock loss are managed very closely. These actions mean that the core stores are in the best possible shape they can be when they are modernised.
- Breaking new ground at Westfield
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Breaking new ground at Westfield
Debenhams is the largest store at Westfield London, one of Europe’s premier shopping centres. Opened in 2008, it has been a blueprint for the new stores we have opened subsequently, giving customers the modern, contemporary shopping environment they want.
Key facts
| UK and Ireland | ||
|---|---|---|
163 stores |
141 full department stores |
22 small format stores |
9 new stores |
c.30 new stores in discussion |
240 possible stores in |