International Expanding the brand internationally
65 international franchise stores
67 countries we will deliver to by spring 2012
25 franchise countries
20% target international contribution to online sales
International
We know that consumers outside of our home market like our brands and products just as much as those in the UK. Our experience of our franchise store programme and our Danish business Magasin du Nord convinces us of this.
We have ambitious plans for expanding our international business. We intend to double the number of franchise stores over the next five years, including entry in a number of new markets.
Following the success of Magasin du Nord, acquisitions remain on the agenda to increase owned international assets. Our international online business is gaining momentum too. In 2011, it accounted for just a fraction of total online sales. Over time we expect this to grow to 20%. By next spring we will have expanded international delivery from seven countries to 67 countries. We already have a country dedicated website for the Republic of Ireland and will be launching a German local currency and local language site in 2012. The new Websphere 7 website technology opens the door to the creation of country dedicated sites and we expect to launch several more over the medium-term.
Expanding the brand internationally
- Debenhams in Tehran
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Debenhams in Tehran
Debenhams opened its first international franchise store in Tehran in January 2009. Since then, two further stores have been opened. As with all our franchise stores, we work closely with our local partner to ensure the stores carry the right range of products and brands for the local market. - International franchise stores
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Franchise stores are a successful low capital, low risk way to expand internationally and will continue to be our preferred route for entry into distant and emerging markets. The first store opened in Kuwait in 1997. There are now 65 stores in 25 countries, from Iceland to Indonesia. We expect to double this in the next five years. Fourteen stores have already been contracted, including seven new openings in 2012, amongst them our first store in Pakistan. Over 50 more stores are in discussion. These include 10 new markets including China, Russia, Brazil and Colombia and expansion in large markets such as India and Turkey. As well as the revenue they generate – £77.0 million in 2011 – the franchise stores enable us to increase the size of our own brand sourcing which often allows us to negotiate better cost prices.
Our current international store footprint
