Debenhams ‘house of brands’ strategy credited as sales growth quickens

Debenhams has credited its strategy of targeting multiple demographics with its “house of brands” after sales growth quickened in its latest fiscal quarter.  

Debenhams sales growth quickened in its latest quarter.

The department store chain says sales from stores open for a year or more increased 1.9 per cent in the 10 weeks to 31 August. Like for like sales had been flat in the previous quarter.

In a trading statement, the company says brands such as Hammond & Co. by Patrick Grant, Top Hat by Stephen Jones and Donna & Markus by designer Markus Lupfer are meeting customers’ demand for “newness and innovation”.

Debenhams has committed to increased marketing spend to fuel growth, launching its autumn/winter campaign earlier this month and prepping activity to mark its 200th anniversary. 

Analysts welcomed the improved performance, citing the retailer’s bespoke multi-brand strategy for the growth.

Retail analyst Conlumino says in a research note: “On the product front, Debenhams’ knack of putting together unique collections from a number of credible designers continues to pay dividends. Being a ‘house of brands’ not only allows it to simultaneously hit customer targets across the age and style spectrum, but also ensures it properly interprets the latest trends and translates them into ‘must have’ high street products.”

Growth was also fuelled by a spike in online sales, up 46.2 per cent in the 12 months to 31 August, and revenue generated through m-commerce, up 128 per cent in the same period.  

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