Skip navigation

Gloucestershire Business News

Debenhams profits to fall by half

Debenhams is expected to post poor profits in its half-year results next week, as it struggles to keep its head above water in tough trading conditions.

Pre-tax profits at the department store are set to half from £87.8 million a year earlier to £44 million according to city analysts, as reported by Retail Gazette.

Like-for-like sales at the chain, which has a store in Gloucester, are also predicted to have dropped 2.5 per cent.

Poor Christmas trading and store closures due to March's extreme weather, which coincided with its spring sale, are thought to have hit margins hard.

A profit warning in January saw share prices plummet 20 per cent. Two underperforming stores were shut in October, with a further 10 earmarked for future cuts, although many of its stores are tied to long leases.

The Cheltenham store closed two years ago, when the former Beechwood shopping centre was closed to make way for high street rival, John Lewis.

Debenhams hasn't followed other retailers down the company voluntary agreement (CVA) route and was forced to cut costs by making 320 staff redundant earlier this year.

Read more: Shoppers tail off to eight-year-low as bad weather hits retailers 

Punchline says: "Debenhams has been a staple of the UK high street for many years, but sadly it cannot match the might of the online retailers and has been left in a difficult position with too many underperforming and unprofitable stores.

"Debenhams is such a huge part of Gloucester's heritage and retail offering, not to mention its significance to the success of any future Kings Square development, that we hope they turn their fortunes around quickly."

What do you think? Email 

Subscribe to Punchline

Related Articles

Major investment revealed as PM praises Gloucestershire firm Image

Major investment revealed as PM praises Gloucestershire firm

When the Prime Minister committed to invest £300million in the UK aerospace industry at this week’s Farnborough International Airshow she also paid credit to an innovative Gloucester business.

£2.2 million of contracts up for grabs Image

£2.2 million of contracts up for grabs

A decision on how to award contracts worth almost £2.2 million could be made tomorrow as Gloucestershire seeks to improve how it supports carers in the county.

£700k boost for canal side cyclists and walkers Image

£700k boost for canal side cyclists and walkers

A popular canal towpath is set to get a major upgrade and its great news for walkers, cyclists and those who want to stay fit.

A look at what’s Next for former cinema site Image

A look at what’s Next for former cinema site

Midas Construction are busy transforming parts of the former cinema site off St Ann Way, Gloucester.

Copyright 2018 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.