Christmas sales surge at Debenhams

A surge in sales in the final week before Christmas helped department store chain Debenhams weather tough autumn trading today.

The company, which has 170 stores in Ireland, the UK and Denmark, said warmer weather throughout October and November impacted sales until a record Christmas week left trading for the 18 weeks to January 7 level on a year ago.

Shares jumped 8% after investors expressed relief at the trading performance, which compared with some forecasts for a decline of up to 2%.

Debenhams slashed prices by up to 40% in a week-long promotion in November and was considered by analysts to be one of the most aggressive discounters in the seasonal period.

The strategy paid off after Debenhams said like-for-like sales including VAT improved by 6.5% in the five weeks to December 31.

Chief executive Michael Sharp said he was pleased with the performance: “We traded well despite the difficult environment as evidenced by strong sales in December, including record sales in the week before Christmas.”

Much of the growth came from the internet after online trade jumped by 35% in the 18 weeks to January 7.