E-commerce boosts profit at Debenhams

Debenhams wants to deliver a full multichannel offering

Positive performance online has helped lift yearly profit at Debenhams, the department store group said today.

The firm’s web operations Debenhams Direct posted a sales increase of 31 per cent at £55.1m during the year to 29 August, against the £42.1m for the same period last year, resulting in pre-tax profit that was up 133 per cent.

Visitors to the web store also increased by 36.8 per cent during 2009, helped by a change to the group's online fulfilment provider, which Debenhams claims has improved service levels and reduced delivery times.

The group also improved its web site this year. It has added features such as social networking capability, video and catwalk/outfit projection, an online outlet that leads to current offers and promotions, a facility that allows customers to shop by size, as well as product reviews and surveys.

According to Debenhams, the development of a full multi-channel offering alongside its web operation is one of the group's key business priorities, with a crucial part of the project being the in-store and online integration to improve product availability.

The group also intends to follow the lead of pure-play rivals such as Asos and pursue opportunities in the international online business arena as well as ramp up the use of affiliates to drive additional traffic to its web site.

Debenhams posted a 23 per cent rise in annual profit to £95.1m for its full fiscal year.