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Christmas Sale Results Are Announced
Chief executive Michael Sharp wants to wean Debenhams shoppers off the discount days that it previously relied on to boost trade. Photograph: Oli Scarff/Getty Images Photograph: Oli Scarff/Getty Images
Chief executive Michael Sharp wants to wean Debenhams shoppers off the discount days that it previously relied on to boost trade. Photograph: Oli Scarff/Getty Images Photograph: Oli Scarff/Getty Images

Debenhams gives Mothercare floor space to make stores more appealing

This article is more than 9 years old
Department store chain hopes shoppers will be drawn in by new brands rather than promotions and discount days

Debenhams is handing over floor space to high street names Mothercare and Monsoon as it tries to make its stores more appealing to shoppers without resorting to running promotions.

The department store chain has already agreed deals with Sports Direct and Costa Coffee as its chief executive, Michael Sharp, tries to wean shoppers off the regular discount days that it previously relied on to boost trade.

The chain has struggled to keep pace with John Lewis, Britain’s biggest department store group, which has outperformed competitors thanks to its strong website, attractive stores and a more affluent customer base.

Dire Christmas trading prompted a rethink at Debenhams with Sharp telling the City earlier this year that 10% of its floor space – 1m sq ft – could be made more profitable by introducing new brands and services. Sports Direct departments have already opened in Debenhams stores in Harrow and Southsea and another two are set to open.

Billed as a trial, Mothercare ranges have debuted in Croydon and Manchester but will also arrive in Debenhams’ Leeds store next week. The area given over to the buggies-to-bibs retailer in Manchester is 6,000 sq ft - as big as one of its standalone stores.

The tie-up with Mothercare is an interesting one as its finance director Matt Smith will take up the same post of Debenhams later this year. Mothercare is also facing its own challenges. Its new boss, Mark Newton-Jones, has launched a £100m rights issue as it looks to raise a war chest to shut underperforming stores and overhaul its outdated systems. On Thursday investors will vote on the fundraising plan with the retailer’s major shareholders thought to be supportive of the move.

Debenhams’ dealings with Mike Ashley’s Sports Direct are complicated by the sportswear tycoon’s financial hold on the business. He speaks for more than 11% of the company after spending £33m buying a near 5% stake last week. The purchase follows a derivative deal, agreed in January, that could hand Sports Direct a near 7% stake next year if the Debenhams share price falls.

More on this story

More on this story

  • Debenhams ‘in good shape for Christmas’ despite profits slump

  • How the rise of tattoo parlours shows changing face of Britain’s high streets

  • Debenhams to open Sports Direct concessions

  • Fierce competition sees prices in UK shops fall by 1.8% in September

  • Debenhams to bring in new names after profit slide

  • Why supermarkets are on the way out

  • Debenhams gains as seller turns more positive

  • Warm weather forces retailers to discount new winter clothing

  • The last video shop in Bristol makes an indie stand against the age of Netflix

  • Sports Direct builds stake in Debenhams with £33m share purchase

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