IT investment boosts Debenhams results

Pre-tax proftits are up 13 per cent to £127m

Debenhams' IT projects have included the use of Radio Frequency ID tags

Investment in IT was crucial to Debenhams' strong results for the second quarter, according to the company's chief executive.

Pre-tax profits for the retail chain rose to £127m, up 13 per cent from £112m in 2006, but sales for the past year have fallen five per cent.

"Our new autumn/winter ranges are being well received and this, with the refitting of stores and investment in a new IT platform and distribution centre, is improving the customer experience," said chief executive Rob Templeman.

"Despite wider concerns about the macro-economic environment, we are confident that the changes we are making are benefiting the business."

Debenhams has spent £37m on refitting its outlets over the past year, a programme which has included the use of Radio Frequency ID technology to help measure in-store stock levels.

And earlier this year the retailer rolled out a new data conductor to help gather sales intelligence from its 124 high street shops.

The department chain is currently trialling a beta version of Neon, a new financial software system developed by Coda.