LONDON: Debenhams, Britain’s second-biggest department store operator, said on Thursday it would return to growth by closing a few stores, revamping the rest and improving its online service, but concerns about the cost sent its shares lower.
After a strategic review by new Chief Executive Sergio Bucher, a former Amazon and Inditex executive, the group also said it would seek efficiencies by simplifying the business.
Debenhams, which posted a 6.4 percent fall in first-half profit, said up to 10 of its 176 UK stores would be reviewed for closure in the next five years, while consultation had begun on closing one central distribution center and about 10 regional warehouses.
Debenhams, ranked second by revenue behind department store chain John Lewis, has struggled in Britain’s intensely competitive retail market in recent years as consumers spend more on holidays, eating out and events.
“Customers have changed and we need to change too. Over the past four years growth in leisure has been 60 percent higher than growth in retail sales,” Bucher said, adding customers were also “increasingly living their lives through their mobile phones.”
Debenhams has 19 million UK customers, but Bucher said there was still a lot to fix.
“Some of our stores look tired and old, the online experience is not as good as it could be and we have so many promotions our customers struggle to know when it’s the right time to shop,” he said.
He said some customers complained that Debenhams had “got really great stuff but you have to work hard to find it.”
Bucher said he would upgrade mobile systems and the supply chain and invest in stores. Growth would come from offering new products and services, building on strong areas, such as beauty, make-up, handbags, swimwear, costume jewelry and footwear.
“We want to grow beauty to a 1 billion pound ($1.28 billion)business,” he said.
Debenhams would switch about 2,000 more staff to customer facing roles, declutter stores with a 10 percent reduction in stock and replenish stock faster. In-store catering would be enhanced.
The firm would also exit some brands and non-core international markets, Bucher said.
Shares in Debenhams, already down a third over the past year, fell up to 5.9 percent as investors fretted about the short-term costs and execution risk of the plan.
Annual capital expenditure would rise from 130 million pounds currently to 150 million pounds between 2018 and 2020, while exceptional costs in 2017-2020 would be 50 million pounds.
“The risks, aside from execution risk..., are that profit before tax is impacted if Debenhams is forced to lower clothing prices to maintain market share,” said RBC analyst Richard Chamberlain, who has a “sector perform” rating on the stock.
He said Debenhams could become more cautious on cash returns and closing stores could be expensive given average leases of 20 years.
Debenhams said pretax profit fell 6.4 percent to 87.8 million pounds ($112.5 million) for the 26 weeks to March 4, in line with market expectations, on revenue up 2.9 percent at 1.68 billion pounds. The interim dividend was maintained at 1.025 pence.
CEO: Some Debenhams stores ‘look tired and old’
CEO: Some Debenhams stores ‘look tired and old’
Saudi tourism employment surpasses 1m as hospitality sector expands
RIYADH: Saudi Arabia’s tourism workforce surpassed 1 million in the third quarter of 2025, underscoring the sector’s rapid expansion as the Kingdom continues to develop its hospitality infrastructure and visitor economy.
According to the latest Tourism Establishments Statistics report released by the General Authority for Statistics, the total number of employees in tourism activities reached approximately 1,009,691 in the third quarter of 2025, marking a 6.4 percent increase compared to the same period in 2024, when employment stood at 948,629.
The growth in employment comes alongside a significant rise in the number of licensed tourism hospitality facilities, which increased by 40.6 percent year on year to reach 5,622 in the third quarter. Of these, serviced apartments and other hospitality facilities accounted for 52.6 percent, while hotels represented 47.4 percent.
The robust growth reflected in the latest tourism statistics aligns directly with the goals of Vision 2030, as the Kingdom aims to double tourism’s gross domestic product contribution to 10 percent. The sector is also seeking to create 1.6 million jobs, and attract 150 million visitors annually by 2030.
The report showed that non-Saudi employees made up the majority of the tourism workforce, numbering 764,520 and accounting for 75.7 percent of the total. Saudi nationals employed in the sector reached 245,171, representing 24.3 percent of all tourism workers.
In terms of gender distribution, male employees dominated the sector with 875,658 workers, while female employees totaled 134,033, making up just 13.3 percent of the workforce.
Hotel performance showed positive momentum, with the average room occupancy rate rising to 49.1 percent during the quarter, an increase of 2.9 percentage points from 46.1 percent in the same period a year earlier.
In contrast, serviced apartments and other hospitality facilities experienced a slight dip in occupancy, recording 57.4 percent compared to 58 percent in the same quarter of 2024.
The average daily room rate in hotels decreased by 3.6 percent to SR341 ($90.9), down from SR354 in the third quarter of 2024. Meanwhile, serviced apartments and similar facilities saw their average daily rate rise by 4.1 percent to SR208, up from SR200 a year earlier.
The average length of stay in hotels was 4.1 nights, down 1 percent from 4.2 nights in the third quarter of 2024. For serviced apartments and other hospitality facilities, the average stay was 2.1 nights, reflecting a marginal decrease of 0.2 percent year-on-year.
The statistics draw on administrative records, surveys and secondary data to capture activity across the Kingdom’s tourism sector, GASTAT said.
