Debenhams

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Debenhams plc
Type Public limited company
Traded as LSEDEB
Industry Retailing
Founded 1778 (by William Clark)
1813 (as Clark & Debenham)
Headquarters 10 Brock Street, London, England, United Kingdom
Key people Nigel Northridge (Chairman)
Michael Sharp (CEO)
Products Fashion clothing, shoes, accessories, cosmetics, home and furniture, electricals, gifts, toys
Revenue Increase£2,282.2 million (2013)[1]
Operating income Decrease £154.0 million (2013)[1]
Net income Decrease£127.9 million (2013)[1]
Employees Increase 29,000 (2012)[2]
Subsidiaries Debenhams Ireland
Magasin du Nord
Website www.debenhams.com

Debenhams plc is a British multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. The company was founded in the eighteenth century as a single store in London and has now grown to 172 locations across the UK, Ireland and Denmark. It sells a range of clothing, household items and furniture and has been known since 1993 for its 'Designers at Debenhams' brand range.

Headquartered in Regent's Place in the London Borough of Camden, Debenhams is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company owns the Danish department store chain Magasin du Nord, and has a subsidiary in Ireland.

History[edit]

The business was formed in 1778 by William Clark, who began trading at 44 Wigmore Street in London as a drapers' store.[3] In 1813, William Debenham became a partner and the corporate name changed to Clark & Debenham. In 1818 the company opened a second store in Cheltenham, and in 1851, Clement Freebody became a partner so the name changed again to Debenham & Freebody.[4] The business was incorporated as Debenhams Limited in 1905.[5]

Debenhams on Briggate in Leeds

The modern Debenhams group grew from the acquisition of department stores in towns and cities throughout the UK, under the leadership of its chairman, Ernest Debenham. The first of these purchases, Marshall & Snelgrove at Oxford Street in London, was acquired in 1919. Later purchases included Harvey Nichols in London's Knightsbridge in 1920.[4] Most of the acquired stores retained their former identities until a unified corporate image was rolled out. The company was first listed on the London Stock Exchange in 1928.

In 1976 the company acquired Browns of Chester. It remains the only UK store to have retained an individual identity.[4]

In 1985 the company was acquired by the Burton Group.[4]

Debenhams demerged from the Burton Group in January 1998 and was once again listed as a separate company on the London Stock Exchange.[6] It expanded under the leadership of Belinda Earl who was appointed CEO in 2000.[7]

Debenhams in Bury St Edmunds

Debenhams opened its largest British store on 4 September 2003, at the new Bull Ring shopping centre in Birmingham.[8] The new store contains 19,230 sq m and opened 20 years after the company closed its Birmingham city centre store due to declining trade.[9] Following the closure of the store in Dudley in January 1981 and the Birmingham store in 1983, the company's only store in the West Midlands for the next six years was a town centre store in Walsall. On 4 November 1989, it opened a store at the Merry Hill Shopping Centre in Brierley Hill.

A private consortium named Baroness Retail Limited acquired the company in November 2003,[10] and it returned to a listing on the London Stock Exchange in 2006. The consortium comprised CVC Capital Partners, Texas Pacific Group, Merrill Lynch Global Private Equity, and management.[11]

The company purchased the brand name and stock of Principles in March 2009 after the business entered administration. Principles operated concessions within 121 Debenhams stores, and was subsequently relaunched by Ben de Lisi as part of the Designers at Debenhams range.[12]

Debenhams' flagship store in Oxford Street

In November 2009, Debenhams acquired the Danish department store group Magasin Du Nord for £12.3 million.[13] The company operates six stores in Denmark under the Magasin brand.[14]

In July 2010 Debenhams purchased the 115 Faith concessions trading within its stores, after Faith entered administration.[15]

In April 2012 the company announced it would be building 14 new stores, and was in negotiations over a further 25 sites in the UK.[16] Debenhams agreed to become the anchor store at the Riverside shopping centre in Shrewsbury.[17] By September 2012, the company announced that like-for-like sales had risen by 3.3% in the six months up to that date.[18]

Debenhams moved to a new headquarters in 2013, in Brock Street, London. The company moved to a new building, built by British Land in Regent's Place. The company leased 174,500 square feet (16,000 m2) of office space from British Land for 25 years.[19]

The company began a refurbishment of its flagship store in Oxford Street in 2013, which will involve the installation of 180,000 aluminium tiles on the exterior of the building that will appear to ripple with the wind. An existing floor will also be converted to become a trading floor. The total cost of the refurbishment will be £40 million, of which Debenhams will contribute £25 million. The owner of the building, British Land, will also contribute towards the cost.[20] The refurbishment is due to be completed by February 2014.[21]

The company's trading statement for the 17 weeks up to 28 December 2013 was released on 31 December 2013, and revealed a reduction in pre-tax profit from £115 million to £85 million.[22] On 2 January 2014, the company's chief financial officer Simon Herrick resigned, following criticism of his financial decisions.[23]

On 13 January 2014 4.6% of Debenhams shares were bought by Sports Direct, the retailer run by Mike Ashley. The stock market purchase of 56.8 million shares (worth around £46m) was made without the prior knowledge of the Debenhams board. Sports Direct stated at the time it intends to be a supportive share holder. The Debenhams board responded by stating they are open-minded with regard to exploring operational opportunities to improve its performance.[24][25] Sports Direct sold its shares on 16 January 2014, although they took out an option to buy further shares up to a total of 6.6%.[26]

Incidents involving the Animal Liberation Front[edit]

Debenhams was targeted three times during the 1980s by the Animal Liberation Front in protest at the sale of animal furs in stores. Stores in Romford, Luton, and Harrow were fire-bombed by members, the worst attack being on the Luton store. As a result, the company stopped selling clothes with animal furs.[27]

It was alleged by Caroline Lucas MP in a debate in Westminster Hall that Bob Lambert, a then undercover police officer, planted the fire bomb that caused £340,000 worth of damage to the Harrow branch of Debenhams in 1987. It is unclear if anything has come of these allegations as of March 2014.[28][29][30][31]

Products and services[edit]

In 1993 the company introduced the 'Designers at Debenhams' brand, the creation of then CEO Belinda Earl, Ben de Lisi and Spencer Hawken.[32] The idea put designer names and brands at High Street prices, including Jasper Conran, John Rocha, Betty Jackson Black, Butterfly by Matthew Williamson, H! by Henry Holland, Star by Julien Macdonald, Frost French, Erickson Beamon, Eric Van Peterson, Janet Reger, Pip Hackett, Melissa Odabash, Ted Baker, St George by Duffer, Jeff Banks, and Ben de Lisi. The brand Designers at Debenhams was the saving grace for the company which had been in decline since the late 1980s. The company also sells goods under a number of brand names that it owns.

In October 2010, Debenhams announced the launch of four new designer names to its fashion range; Jonathan Saunders, Preen, Jonathan Kelsey, and Roksanda Ilincic, who will be working with the retailer on a new concept called Edition.[33]

In the UK the company operates a retail website, as well as a mobile-enabled website and mobile apps that allow customers to shop the online range and scan product barcodes in store.[34] Localised retail websites for Ireland and Germany have also been introduced.

Debenhams provide store card and credit card services, operated by NewDay. Insurance products are also provided under the Debenhams brand by other financial companies. Debenhams also operate bureau de changes in selected stores.

In October 2013 the company launched an online ticket service known as Debenhams Box Office[35]powered by a number of ticket providers, including notable primary ticket outlets such as Skiddle.[36]

Stores[edit]

United Kingdom, Ireland and Denmark[edit]

Crypt Chambers in Chester houses part of the Browns of Chester store and is a Grade I listed building.

As of 2013, the company owns and operates 172 stores in the United Kingdom, Ireland and Denmark. Stores in Denmark trade under the Magasin du Nord brand.[37] Stores in Ireland are operated by Debenhams Ireland, which is a subsidiary of Debenhams plc.

Debenhams occupies the most sites of any of the traditional department store groups in the UK. The majority of the original trading names of the stores, in each of their respective locations, were replaced with the "Debenhams" name during the 1970s. All department stores in the group now trade as "Debenhams" except Browns in Chester. New stores are usually located within wider town and regional shopping centre developments. Stores amalgamated into the group include:

International franchises[edit]

The Debenhams brand is used for stores operating under licence in 26 other countries,[38] which are

Armenia, Azerbaijan, Bahrain, Bulgaria, Cyprus, Czech Republic, Egypt, Estonia, Hungary, Iceland, India, Indonesia, Iran,[39] Jordan, Kazakhstan, Kuwait, Latvia, Malaysia, Malta,[40] Pakistan, Philippines, Qatar, Romania, Russia,[41] Saudi Arabia, Turkey, United Arab Emirates, and Vietnam.

The company announced in January 2013 that it planned to increase the number of international franchise stores to 150 within 5 years.[42]

References[edit]

  1. ^ a b c "Annual Report 2013". Debenhams plc. 2014. Retrieved 12 February 2014. 
  2. ^ "Overview". Debenhams. Retrieved 22 February 2012. 
  3. ^ "History of Debenhams". Debenhams. Retrieved 14 September 2013. 
  4. ^ a b c d "History". Debenhams. Retrieved 22 February 2012. 
  5. ^ "Business History of Department Stores: Interesting Dates". KIPnotes. 1 October 2008. Retrieved 22 February 2012. 
  6. ^ "New look for Debenhams". BBC News. 27 April 1998. Retrieved 12 August 2013. 
  7. ^ Jane Martinson (14 December 2006). "The Queen of Retail makes a dull brand shine". The Guardian. Retrieved 22 February 2012. 
  8. ^ "Bullring opens its doors". BBC News Online. 4 September 2003. Retrieved 22 February 2012. 
  9. ^ "Bullring Information Pack". Bullring Alliance. 2003. Retrieved 22 February 2012. 
  10. ^ "Debenhams backs Baroness takeover". BBC News. 10 November 2003. Retrieved 12 August 2013. 
  11. ^ "Debenhams shares rise on listing". BBC News. 4 May 2006. Retrieved 12 August 2013. 
  12. ^ Alastair Jamieson (7 March 2009). "Fashion chain Principles to close 66 stores and axe majority of staff". Daily Telegraph. Retrieved 5 October 2012. 
  13. ^ Ester Bintliff (12 November 2009). "Debenhams steps into mainland Europe". Financial Times. Retrieved 12 August 2013. 
  14. ^ "About Debenhams". Debenhams. 2013. Retrieved 15 January 2013. 
  15. ^ Rosie Baker (2 July 2010). "Debenhams has faith in shoe chain". Marketing Week. Retrieved 5 October 2012. 
  16. ^ "Debenhams profit edges higher in 'difficult' trading". BBC News Online. 19 April 2012. Retrieved 7 October 2012. 
  17. ^ "Debenhams to be Shrewsbury shopping centre 'anchor tenant'". BBC News Online. 19 April 2012. Retrieved 7 October 2012. 
  18. ^ "Debenhams sales rise as profits 'set to grow'". BBC News Online. 18 September 2012. Retrieved 7 October 2012. 
  19. ^ "Debenhams to Take Additional Space at British Land’s Regent’s Place". British Land. 1 May 2012. Retrieved 27 July 2013. 
  20. ^ Jonathan Prynn (11 June 2013). "Debenhams to dazzle Oxford Street with 180,000 shiny tiles". Evening Standard. Retrieved 27 July 2013. 
  21. ^ "British Land Unveils Revolutionary Facelift for Debenhams Oxford Street Flagship". British Land. 11 June 2013. Retrieved 27 July 2013. 
  22. ^ "Debenhams warns on Christmas sales". BBC News. 31 December 2013. Retrieved 2 January 2014. 
  23. ^ Titcomb, James (2 January 2014). "Debenhams finance boss quits days after major profit warning". The Telegraph. Retrieved 2 January 2014. 
  24. ^ "Sports Direct buys 4.6% Debenhams stake". BBC. 13 January 2014. Retrieved 13 January 2014. 
  25. ^ "Sports Direct nets 5% stake in Debenhams". Sky News. 13 January 2014. Retrieved 13 January 2014. 
  26. ^ "Sports Direct takes option on Debenhams stake". BBC News. 16 January 2014. Retrieved 16 January 2014. 
  27. ^ "Undercover policeman 'fire-bombed shop,' MPs told". BBC News. 13 June 2012. Retrieved 10 March 2014. 
  28. ^ "Undercover policeman 'fire-bombed shop,' MPs told". BBC News. 13 June 2012. Retrieved 10 March 2014. 
  29. ^ "MP Caroline Lucas names undercover officer as shop fire bomber". BBC News. 13 June 2012. Retrieved 10 March 2014. 
  30. ^ "Undercover cop alleged to have fire-bombed Debenhams for ALF". Constabulary. 13 June 2012. Retrieved 10 March 2014. 
  31. ^ "Caroline Lucas Exposes Allegations Ex-Undercover Cop Bob Lambert Firebombed Debenhams London Store". The Huffington Post. 13 June 2012. Retrieved 10 March 2014. 
  32. ^ "Designers at Debenhams". Debenhams. Retrieved 22 February 2012. 
  33. ^ "Four new designers join Debenhams for ‘Edition’". Debenhams blog. 21 October 2010. Retrieved 22 February 2012. 
  34. ^ "Shopping goes truly mobile" (Press release). Debenhams. 16 September 2011. Retrieved 22 February 2012. 
  35. ^ "Debenhams Offers New TicketBuying Service". London Evening Standard. 
  36. ^ "Skiddle Affiliates Get Ready for NYE". Skiddle Blog. 
  37. ^ "Annual Report and Accounts 2012" (Press release). Debenhams. 20 October 2011. p. 36. Retrieved 22 February 2012. 
  38. ^ "International Franchise Stores". Debenhams plc. 2013. Retrieved 11 August 2013. 
  39. ^ Chris Irvine (16 December 2008). "Debenhams 'to open first store in Iran". Daily Telegraph. Retrieved 22 February 2012. 
  40. ^ "Debenhams launching Malta recruitment drive". The Times (Times of Malta). 13 July 2009. Retrieved 22 February 2012. 
  41. ^ Nastassia Astrasheuskaya (5 October 2012). "Debenhams has high hopes for Russia". Reuters. Retrieved 11 August 2013. 
  42. ^ "Interim Management Statement". Debenhams plc. 8 January 2013. Retrieved 15 January 2013. 

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