BLUE CROSS FAIL

Debenhams may shut 10 shop after sales plunge triggers shock profit warning

Debenhams has 165 outlets and the future of ten stores will reviewed later this year

DEBENHAMS could shut ten stores after it issued a shock profit warning.

The retailer, which has 165 outlets, brought forward a planned Christmas trading statement by a week to give the grim news.

Alamy
Debenhams may shut 10 stores after sales fell 2.6 per cent

It said sales fell 2.6 per cent in the 17 weeks to 30 December compared with the same period in 2016.

The chain, now slashing prices in its Blue Cross Sale, has had to scale back its profit ambitions for the year from around £80million to just £55million.

The future of up to ten stores will be reviewed later in the year.

Two loss-making outlets at Farnborough, Hants, and Eltham, South-East London, are already earmarked for closure and eight more could be axed.

PA:Press Association
The future of ten of the 165 outlets will be reviewed this year

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Boss Sergio Bucher will accelerate a planned stores revamp and cut costs.

Laith Khalaf, analyst at Hargreaves Lansdown, said: “Customers turned out for Christmas but refused to put their hands in their pockets.”

It comes after retailer Next gave an upbeat Christmas trading statement.

2,000 people filmed queuing as Debenhams launches new store at the Mander Centre in Wolverhampton
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