Get The Free Sample Complete
SWOT & PESTLE Analysis Report
This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We also guarantee that you cannot find matched quality at such competitive and economic pricing.
Get Your Free Summary Copy of the
SWOT & PESTLE Analysis Report
Get the summary SWOT & PESTLE.com report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

Debenhams SWOT & PESTLE Analysis

ID : 52342053| Mar 2018| 16 pages

COMPANY PROFILE -Debenhams

Business Sector :Lifestyle & Retail

Operating Geography :United Kingdom, Europe

About Debenhams :

Debenhams is a London based multi-national brand which was founded in 1778 by William Clark. It has a market cap of £355.09. It offers food services like cafes and restaurants, gifting services, clothing, household products and furniture. It is a pacesetter in high-street beauty wear, occasion wear & accessories. Debenhams offers its customers a wide range of brands consisting of its own brands as well as foreign brands & concessions. Premium brands like Ted Baker, Frost French, H! By Henry Holland, Ben Di Lisi, etc. are being sold in its up market stores. It has dedicated significant amount of investment to design in the last 20 years. It is UK's leading department stores group with a great presence in womenswear, menswear, childrenswear, health and beauty, accessories, lingerie and home. It has around 27,000 employees worldwide that support its 246 stores locations and online presence in over 60 countries serving 19 million customers as of 2017.

Debenham's mission is "to make shopping, confidence boosting, sociable and fun”. The Company's USP or unique selling point lies in being a legacy brand with 200 years of operations in multi-brand retail offering differentiated and exclusive mix of private labels and international brands.

Debenhams Revenue :

2.342 Billion GBP (2016)

Competitive Analysis of Debenhams

SWOT
PESTLE
The SWOT analysis for Debenhams is presented below:
Strengths
Weaknesses
1. Sound Financial Performance
2. Steady Strategic progression
3. Developing channels through Partnership
4. Strong Digital Growth
1. Dip in in-store sales
2. Weak UK market adversely affecting Earnings
Opportunities
Threats
1. Prospective partnerships to increase market share
2. Upcoming Restructuring Policies
3. Opportunities in new segments & geographies
1. Increasing costs may lead to shutting down of many stores
2. Growing Competition
3. Dangers of Cybercrime on sales
SWOT & PESTLE (combined)
Complete Report
USD 12.53
*
Great quality, Affordable pricing.
Safe and secure payments

Detailed SWOT Analysis of Debenhams

 

Strength

1. Sound Financial Performance:There was an increase of 2.1% in international like for like (LFL) sales on a reported basis in the 52 weeks to 29 August. The sales of its beauty products surged by 5% & 8% for food services. The full price sales increased by 1.7%. International EBITDA surged by 8%. Magasin's (its primary profit earning international centre) sales stood strong despite a testing business environment. Net debt ameliorated. The final dividend was of 2.4p per share i.e. a total dividend of 3.425 p per share. Debenham's gross transaction value rose by 2.0% to £2,954.1 million for the 1 year period ending September 2017. Its revenue surged by 1.1% to £2,335.0 million. There was a dip in net finance costs by 1.6% to £12.3 million which is due to reduced average debt of £257 million in comparison to 2016's £273.

2. Strong digital growth: Digital growth grew steadily in Financial Year 2017. The sales through digital platforms grew by 12.7% with 13.4% growth in EBITDA .This growth was steered mainly by the increase in demand for mobile phones. 55% of the orders on digital platform were made through mobile phones and the conversion rate has grown by 15% primarily due to smartphones. Growth is also driven by concentrated & flexible web development programmes, constant improvements in beauty brand presentations & introduction of a web app. This has enabled better user interface & faster user responsiveness. 40% growth across digital platform has been through profits from Magasin (international centre). They have also created their brand presence on UK's Amazon Prime, Very, Label, etc. to enter into new geographies and across different demographics.Debenham's website clocked a phenomenal over 280 million visits in 2017 with the brand having 97% awareness in the UK.

3. Steady Strategic progression: A new programme, Debenhams Redesigned was put forth in FY 2017 which will help Debenhams to expand in social shopping space. Several structural & operational modifications and significant partnerships have been made in 2017. They have decreased stock density which has significantly ameliorated full price sell-through to 1.7%. Debenhams concentrated on categories associated with holiday during 2016 summers & marketed it well which made them the front runner in UK’s swimwear market. It also strengthened its market in accessories & cross- shopping in luggage in the holiday season. They have reintroduced "Beauty Club loyalty" which is endorsed by Alesha Dixon, a popular face which enhances brand representation. It will add to Debenham's existing base of 1.2 million cardholders by more than 10%.

4. Developing channels through Partnership: Partnerships with Mobify and Sapient Razorfish enhanced the pace and interface of Debenham's mobile portal. Within a span of just 3 weeks of web app's introduction, conversion rates improved by double digit percentage points. They have partnered with LTD which is UK’s top digital beauty services provider. This will aid in increasing footfall in their stores. Its partners in Middle East, Eastern Europe and South East Asia have supported shipments to over 60 countries and have created an emerging brand whole selling business. It has opened 15 coffee shops with Costa Coffee & a range of food options with Patisserie Valerie and Franco Manca. It will grow its market cap and further increase sales especially in Ireland and Denmark.

Weakness

1. Dip in in-store sales: The in store spending has significantly decreased. The sales growth was solely attributed to the online demand in 2016. There was a dip in the retail clothing sales as well. The clothing range has especially seen a dip in the first half of 2016 followed by slow growth. Profit Margins have dipped due to an adverse business environment. This has poorly affected the overall revenue which fell to 1892.9 million i.e. a decrease of 0.7%.

2. Weak UK market adversely affecting Earnings: Debenhams has 59 stores in UK. The sales growth failed to pick up even in peak Christmas season. UK's Like-for-like sales dipped by 2.6% in the 17 weeks till 30 December 2017. The UK's clothing market has become volatile. There is also increased competition which has led to a dip in clothing sales. This has forced Debenhams to slash prices in the UK. Decreasing mark-up will lead to smaller profit margins. This has already affected its share price in 2018 when the price fell by around 20% in the first week of January 2018. It will lead to a poor perception in UK market & may further deteriorate sales.

Opportunity

This section is available only in the Complete report on purchase.

Threat

This section is available only in the Complete report on purchase.

SWOT & PESTLE (combined)
Complete Report
USD 12.53
*
Great quality, Affordable pricing.
Safe and secure payments

Check out analysis of other relevant companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
Copyrights and Disclaimer

Debenhams SWOT and PESTLE analysis has been conducted by Kanupriya Sheopuri and reviewed by senior analysts from Barakaat Consulting - an Ezzi IT and Business Consulting venture.

Copyright of Debenhams SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Debenhams SWOT & PESTLE Analysis
Price : USD 12.53