Debenhams’ profits down

22 October 2008

Debenhams has reported a 16% fall in profits, due to deteriorating trading conditions.

With like-for-like sales falling 0.9%, pre-tax profit for the year to 30 August fell to £110.1 million – over £20 million lower than 2007’s figure (£131.4 million).

In the six weeks following the end of August, the BBC reports, like-for-like sales fell 4.2%.

With 145 stores throughout the UK and Ireland, the department store chain is just one of many being affected by today’s global economic troubles.

“During tough times, consumers tend to have less money to spend – and to be more careful about spending what they do have,” said a spokesperson for debt management company Gregory Pennington, “and the Nationwide Consumer Confidence Index sank to 50 points in September. This was down three points from August, and down almost 50% from the 95 points we saw in September 2007.

“Many of today’s shoppers are struggling to manage their debt repayments as well as coping with the rising cost of living, so it’s no surprise to hear that shops are suffering too.”

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).