British department store chain, Debenhams, has reported sluggish sales in its trading update for the 17 weeks period ended on December 30, 2017.
The retailer has stated that despite efforts made on tactical promotional activities, it noted a 2.6 per cent decline in sales during the period under review when compared to the figures of 2016 for the same period.
Post-Christmas sales also remained below expectations for the company despite a markdown investments. It, however, noted a 9.9 per cent increase in digital sales.
Debenhams now plans to shut around 10 of its existing stores after witnessing a drop in sales. The company has already announced the closure of stores at Farnborough, Hants, Eltham, and South-East London outlets as they turned out to be the loss makers for it. Eight more are on the verge of closure.
Sergio Bucher, Chief Executive Officer at Debenhams mentioned in the statement issued that the financial performance of the company has witnessed a setback as it tried to get competitive for its customers, challenge the market scenario and because of the ongoing promotional activities.
The statement added that the market dynamics Debenhams faced reinforced its decision on moving faster on the path of implementation of changes, culturally and organisationally. This, the company expects, would ensure it is in the best shape for the fast-changing current retail environment.
In spite of the unfavourable results, the CEO appreciated the efforts made to cope up with the new hires to important management roles. In December 2017, Debenhams announced the appointment of Steven Cook, former Chief Merchant of Canadian department store chain Holt Renfrew, as its new Fashion and Home Managing Director.
However, Bucher also underlined that Debenhams was working on plans to cut jobs and further streamlining the structure of its management.
