Debenhams posts flat sales despite £2m TV campaign

LONDON - Debenhams, the high street retailer, has reported static like-for-like sales for the last six months, despite its first TV advertising campaign for almost three years.

Debenhams reports flats like-for like sales
Debenhams reports flats like-for like sales

For the 31 weeks to 3 April, the retailer's like-for-like sales were up just 0.3% with revenue up 8.4% to £1.42bn.

In October, Debenhams rolled out a brand-led £2m TV campaign, its first since 2007. The ad was the first major brand work by JWT after it was appointed in April last year.

The ad focused on design and used the strap line ‘Design in every department' to support store re-fits which began at the beginning of September.

It aimed to entice lapsed and potential new customers to shop with the retailer in the run-up to Christmas.

However, despite sluggish sales during the period, the company reported strong profits of 18.6% (before tax) to £123.6m, boosted by new store launches, an Irish restructure and operational efficiencies.

Debenhams has around 160 stores throughout the UK and Ireland and Rob Templeman, chief executive at Debenhams, said that the retailer has been successful throughout the recession.

He added: "Throughout the last 18 months of recession, Debenhams has consistently achieved growth in sales, margins and trading profits. We made further progress in delivering our strategy in the first half and are pleased with our performance."

In February it was revealed that Alison Jones, marketing director at the department store chain was leaving to take a marketing position at the Arcadia Group. Jones will oversee marketing plans surrounding the integration of its retail brands into the BHS chain.

Rival John Lewis witnessed like-for-like sales up 2.3% in the year to 30 January 2010. (on a 52 week basis). This was despite tough trading conditions in the first half of the year when it witnessed a like-for-like sales decline of 4.7%.

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