DEPARTMENT store Debenhams claimed it was winning market share from rivals after seeing a small rise in sales in the autumn.
However, the chain lost an estimated £30m of sales to the big freeze, which also hit high street retailers Next, Mothercare and HMV. However, some analysts argue that, while important, the snow is only a contributory factor and retailers may be using it to mask long-term problems.
Rival department store House of Fraser reported like-for-like sales up 8.5 per cent over the five weeks to January 8, while British online and home shopping group Shop Direct reported a five per cent rise in Christmas sales, in spite of the severe weather.
A fuller picture of trading over the festive period will emerge this week as the likes of Dixons, Halfords, Tesco and Sainsbury’s issue updates.
Having seen improved trading in the autumn, Debenhams said like-for-like sales in the 19 weeks to January 8 were reduced by between 2.5 per cent and three per cent due to the snow, leaving same-store sales across the period 1.3 per cent lower on a year earlier.
Chief executive Rob Templeman said he was pleased with the performance, particularly as industry figures showed the company gained market share, including in men’s and children’s clothing.
He added that he expected the company to make progress over the coming months, despite remaining cautious about the strength of consumer confidence.
Debenhams shares, which returned to the stock market at 195p in 2006, have increased by nine per cent over the past three months, outperforming a 4.5 per cent rise in the general retailers index.
Matthew McEachran, a retail analyst at Singer Capital Markets, estimated the three per cent hit to sales caused by weather disruption cost the company in the region of £30m in lost sales and £13m in gross profit.
He said the underlying performance of the business and strategic changes meant Debenhams should be able to offset much of the damage over the remaining 33 weeks of its financial year.
Mr McEachran said: “In light of the snow impact, this is a decent performance from Debenhams and, now the snow has gone away, we expect performance on a cumulative basis to be gradually clawed back, albeit probably not entirely.”
As part of its strategy to put margins ahead of sales, which was set out 18 months ago, Debenhams has completed a series of store refits and openings, as well as developed online with initiatives such as a Debenhams app for the iPhone.
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