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Sancho Panza

Debenhams Says Don't Count On Consumer Recovery In 2014

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Reuters 24/10/13

'(Reuters) - Debenhams (DEB.L), Britain's second-largest department store retailer by sales, is not counting on the pace of any consumer recovery picking up significantly in 2014, it cautioned on Thursday as it reported a 2.7 percent fall in full-year profit.

"There is a clear disconnect between some of the more positive economic data and how customers are actually feeling in reality," chief executive Michael Sharp said, adding a consumer recovery was "probably further away than people might have previously liked to expect."

Though data and surveys have indicated the outlook is improving for UK consumer spending, retailers are generally still cautious as inflation continues to outpace wage rises - Tesco (TSCO.L) and Sainsbury's (SBRY.L) have recently highlighted that consumers' disposable income is still falling [iD:nL6N0HS0WW][iD:nL6N0HY2AU].

Sharp said he regularly met shoppers: "They talk about the pressure of energy costs, food inflation, the cost of car parking and they are all very clear that all those component parts are running ahead of wage inflation."

The 200-year-old group, which trades out of 236 stores across 28 countries, made a pretax profit of 154 million pounds ($248.98 million) in the year to August 31 - in line with analyst expectations but down from 158.3 million pounds made in the 2011-12 year.

Analyst forecasts had been cut after a profit warning in March that was blamed on January snow. The firm then endured unhelpful spring weather before getting a boost to sales from a summer heatwave.

Now a mild autumn looks set to cause more problems.

"The hot weather has sent Debenhams' autumn/winter range into a tailspin. It's nearing the end of October and I have just seen a promotion offering 25 percent off a coat," said James McGregor, director of retail consultants, Retail Remedy.'

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Reuters 24/10/13

'(Reuters) - Debenhams (DEB.L), Britain's second-largest department store retailer by sales, is not counting on the pace of any consumer recovery picking up significantly in 2014, it cautioned on Thursday as it reported a 2.7 percent fall in full-year profit.

"There is a clear disconnect between some of the more positive economic data and how customers are actually feeling in reality," chief executive Michael Sharp said, adding a consumer recovery was "probably further away than people might have previously liked to expect."

Though data and surveys have indicated the outlook is improving for UK consumer spending, retailers are generally still cautious as inflation continues to outpace wage rises - Tesco (TSCO.L) and Sainsbury's (SBRY.L) have recently highlighted that consumers' disposable income is still falling [iD:nL6N0HS0WW][iD:nL6N0HY2AU].

Sharp said he regularly met shoppers: "They talk about the pressure of energy costs, food inflation, the cost of car parking and they are all very clear that all those component parts are running ahead of wage inflation."

The 200-year-old group, which trades out of 236 stores across 28 countries, made a pretax profit of 154 million pounds ($248.98 million) in the year to August 31 - in line with analyst expectations but down from 158.3 million pounds made in the 2011-12 year.

Analyst forecasts had been cut after a profit warning in March that was blamed on January snow. The firm then endured unhelpful spring weather before getting a boost to sales from a summer heatwave.

Now a mild autumn looks set to cause more problems.

"The hot weather has sent Debenhams' autumn/winter range into a tailspin. It's nearing the end of October and I have just seen a promotion offering 25 percent off a coat," said James McGregor, director of retail consultants, Retail Remedy.'

Good weather causing problems...not that is unexpected :lol::lol::lol:

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What is their margin performance? (Change year on year) I visited a Debenhams recently and the quality had dropped significantly. Shoes were bad in particular with lots of plastic glued soles. Staff also seemed disinterested.

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What is their margin performance? (Change year on year) I visited a Debenhams recently and the quality had dropped significantly. Shoes were bad in particular with lots of plastic glued soles. Staff also seemed disinterested.

How is primark doing?

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How is primark doing?

No idea. Probably really well.

Oh should add the relatively warm weathrr I think will mean some big discounts / sales at some of the retailers.

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