Multi-channel

Customer behaviour is changing. Customers already have a multi-channel mindset: they still love the high street but they also browse online before shopping instore, they click and collect, they use instore ordering facilities and they shop on the go through apps and mobile websites.

We believe that department stores like Debenhams, with a wide product range and large high street space, are ideally placed to take advantage of these changes. The integration of our stores and other sales channels is what makes us a true multi‑channel retailer.

We’re making progress. We use online sales as an indicator of multi-channel growth as it is the largest non-store sales channel. Online sales grew by 73.8% in 2011 to £180.4 million. But the opportunity is enormous and we are determined to be at the forefront of it. Our medium-term target is to grow online sales to £500 million.

Increasing availability and choice through multi-channel

Increasing choice: more products: Increasing choice: more products

We already offer a wide range of product categories instore but there are others that customers associate with department stores that we do not currently sell. Multi-channel allows us to widen our product offer, particularly for large items like furniture, household appliances and TVs, in a way that is convenient for the customers and low risk for us. There is also an increasing number of online only brands. And online is a great way to sell additional and peripheral sizes.
Increasing choice: more ways to shop: Increasing choice: more ways to shop

Customers can buy Debenhams products in an ever-increasing number of ways. Our stores are clearly the biggest of our sales channels but we also offer websites, a range of mobile apps for smartphones and tablets, Debenhams TV, instore kiosks, telephone ordering and catalogues.
Instore ordering: Instore ordering

We have been investing in instore ordering over the past year and have installed nearly 650 kiosks across the store portfolio. They use the latest “big button” touchscreen technology which feels more like using an app than a website. We are also trialling webshops in 14 stores. A number of different approaches are being tried out with various groupings, locations and numbers of kiosks. The largest is in Coventry where a full scale webshop is being trialled.
Increasing availability: Increasing availability

We want to be able to satisfy demand that is not currently being met. In a small store this means demand for products that are not ranged. In all stores and online it is demand for items which are out of stock. We want fewer instances when a product is reduced in price even though there is full price demand elsewhere in the business. This will help us to reduce markdown. Our goal is to be able to fulfil demand from any location in the business through a concept known as “Endless Aisle.” We have already started and already supplement warehouse stock with the stockrooms of 30 large stores. By the start of 2013 we will be able to utilise stock from across the business including the stockroom and shop floor of every store.
Systems and logistics: Systems and logistics

We are investing to make sure we have the systems in place to meet our multi-channel aspirations. As well as upgrading the website, we are investing in additional warehousing and distribution capacity which will see our Peterborough Distribution Centre converted to an online fulfilment centre which will allow us to expand delivery options and increase the profitability of multi-channel by improving collation of orders and reducing delivery costs.