Debenhams' strategic shift towards selling more of its own-brand lines is paying off for the department store group. While the reduction in concession space to make way for its own-bought 'Designers' ranges meant like-for-like sales climbed just 0.3 per cent over the first half of its financial year, gross margin was significantly higher.
Management didn't provide a figure, but broker Shore Capital estimates an uplift of more than 100 basis points. As well as the impact of its 'Designers' ranges, the group has also benefited from better buying, which kept markdowns to a minimum. Although the pull-back from concessions meant Debenhams lost womenswear market share, interest in the newly relaunched Principles brand is said to be high, and it gained share in men's and children's clothing.
