Department store chains looked to be one of the rare retail success stories during the recession, with British giant John Lewis managing to post record sales figures over the Christmas period. However, it looks like the bubble may have burst for certain brands within the sector as Debenhams posted a shock profit warning after a 10 per cent slump in January.
Nautica is one of the clothing brands that will be introduced to the store
Although chief executive Michael Sharp blamed heavy snowfall for the falling sales figures, February’s performance failed to make up the drop in profits and as such has affected full year margins, with analysts now voicing their concerns about the brand’s future.
However, in a display of confidence, Debenhams has announced that its Bristol Horsefair branch will undergo a multi-million pound refurbishment this spring.
While this may seem unwise for a chain unlikely to meet full year profit forecasts, it could prove to be a shrewd move – for some time now, Bristol has been held up as a city which has coped well in the economic crisis and still manages to sustain a relatively successful retail environment.
The ground floor of the department store will be upgraded and the chain hopes that all work will be finished in time for the peak summer shopping season at the beginning of June. All cosmetics concessions will receive new shop fits while the existing layout will be rearranged in order to make room for new brands.
Meanwhile, clothing brands Nautica and Lipsy will be introduced to the store for the first time, while a Barratts Shoes concession stand will join the footwear range already on display.
Elsewhere, the style and accessibility of the department store will be addressed, with the restaurant being modernised to appeal to a wider range of consumers. Walkways in the commercial property will be widened to allow for wheelchair access, the toilets and changing rooms will be upgraded and new lighting will be installed throughout the store.
Nick Brand, manager of Bristol Debenhams, voiced his excitement regarding the upcoming changes.
He said; “The modernisation is all about giving our customers an improved shopping experience and my team and I are confident that customers are going to love the new look.
“Once complete, the store will really have that wow factor, providing a new visual experience for shoppers.”
Do you think carrying out expensive refurbishments on existing successful stores is a clever marketing move by a department store brand failing to emulate the success of rival John Lewis, or should the directors of Debenhams be attempting to stick to a more austerity-based budget given the recent shock profit warning?
Previous Post
Provincial Market Has a Lot of Catching Up To Do
