Debenhams set to go from strength to strength as online grows

In its latest results published this morning, Debenhams posted flat like-for-like sales over the four months to date.

However, like-for-likes are still up 2.1 per cent over the past 42 weeks, which is a far better portrayal of its financial and trading position.

Online sales have also done well, growing by 40 per cent during the year to date.

Debenhams, like many other retailers, has suffered a bit of a set back due to the weather but overall it is continuing to perform well in what is still a brutal, and brutally competitive, retail environment.

So just what is 'Debs' getting right?

While stepping into some of its bricks and mortar stores is like being beamed back to the eighties, things are improving: increasingly there are branches of Debenhams that are ultra-modern and offer an above-average retail experience.

Even its ugly flagship store on Oxford Street is currently undergoing a £40m makeover. Let’s hope its Clapham Junction store is next on the hit list.

But Debs is doing well above all because it has a very strong price proposition, which goes down well with the cash-strapped consumer.

Shoppers' decisions are heavily influenced by price, and Debenhams drives a huge amount of footfall and online visitors through sales and discounting.

Synonymous with its 'Blue Cross' sales, which are practically permanent fixtures both in-store and online, Debenhams stands out because there are very few remaining affordable department stores.

As a British retail institution that harks back to the eighteenth century, Debenhams also trades off the loyalty factor as a trusted household name. Even if some people won't admit it publically, they do like to shop there.

And when they do get there, it's actually a pleasant surprise. The retailer stocks some decent, quality lines such as the exclusive H! by Henry Holland, and scores of well-known affordable and luxury brands from Havaianas to Jimmy Choo.

It's not just aisle after aisle of Blue Cross garments.

Key to the growth of any retailer these days is the ability to embrace e-tail and seamlessly incorporate online channels to boost sales and foster a wider customer base, including overseas shoppers. And here again, rather like Next, Debenhams is doing well.

As well as the loyalty of its customers, rejuvenated stores and price proposition, Debenhams' steady growth can be attributed to the development of its online and mobile channels.

Some of its stores might be old-fashioned, but its mobile proposition, with regularly updated social media feeds, most certainly is not.

Slick apps that span multiple operating systems – Android, iPhone, iPad, Kindle and BlackBerry – have driven an 85 per cent increase in mobile sales, while online sales, as mentioned above, have also fared very well thanks to an intuitive site and the incentive of free delivery on orders over £30.

All in all, Debenhams is a solid retailer that understands retail and knows how to survive in hostile market conditions. Don’t underestimate its ability to continue to outperform in the months and years ahead.