Debenhams ready to focus on Irish retail market

Debenhams, the UK's second biggest department store chain, is taking on Ireland with a vengeance.

Debenhams, the UK's second biggest department store chain, is taking on Ireland with a vengeance.

Following yesterday's confirmation that it is to take over the leases on nine Roches Stores in a deal worth at least €29 million, Debenhams will have 12 outlets in the Republic - provided it retains its three existing shops.

According to chief executive Rob Templeman, Debenhams intends to convert the Roches Stores into Debenhams-branded shops and introduce its own mix of designer products, concessions and international brands over the next six to 12 months.

One London-based source emphasised its own-brand concessions, such as clothes designed by Jasper Conran and John Rocha, saying this is one area where the retailer is faring better than its UK rivals such as House of Fraser or John Lewis.

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The company's latest results for the year ended September 3rd, 2005 back this up, attributing a large part of the doubling in sales to more than £2 billion (€3 billion) to its "Designers at Debenhams" brand, introduced in 1993.

Yesterday's announcement marks the start of yet another period of change for the retailer, which has grown its share of the UK department store market from 15 per cent to just over 18 per cent in the past two years.

Debenhams earlier this year relisted on the London Stock Exchange, 78 years after its initial share sale. It started out in 1813 with one store and currently operates 123 department stores in the UK and Ireland and 29 franchises in 14 other countries.

In addition to two share sales, the group has been taken private twice - when it was acquired by the Burton Group in 1985, and in 2003 when it was bought by a group of investors for £1.7 billion.

In Ireland, the retailer has maintained a relatively low profile, with profits of just over €3.5 million in the latest financial year - up 18 per cent. Revenue increased 45 per cent to €28.5 million. This compares with total group pretax profits of £238.6 million and sales of £2.09 billion in the year to September 3rd, 2005.