Product development and innovation, as well as capitalising on the differentiation that Designers at Debenhams gives us, are important drivers of growth. In February, the much-missed brand Principles returned to Debenhams' stores, now designed by Ben de Lisi. We are greatly encouraged with the initial response of customers and believe that Principles has the potential to become one of our biggest brands over the medium-term. As the half came to an end, the new Designers at Debenhams range H! by Henry Holland started to arrive in stores and early feedback is again very positive. Henry Holland himself will be officially launching the brand in our Oxford Street store tomorrow (Wednesday 17 March).
The space for Principles and H! was created at the time of our major space move at the end of the last financial year meaning that this space was not fully optimised prior to their launch. As a consequence, the second half of 2010 will benefit from enhanced productivity of the 150,000 square feet of trading space that these brands will now occupy.
The multi-channel business moved forward strongly in the first half with sales increasing over 80%. The existing website business is now complemented by in-store ordering, click-and-collect and international deliveries.
Investing for future growth has continued with the opening of four new stores in the first half including the 128,000 sq ft flagship department store in Eldon Square, Newcastle-upon-Tyne on 16 February, plus three new Desire by Debenhams stores in Kidderminster, Monks Cross and Witney. In addition, new international franchise stores opened in Iran and Vietnam. The store refurbishment programme has now recommenced with a number of projects starting in February, including major store refits in Glasgow and Manchester.
The purchase of Magasin du Nord, the leading Danish department store chain, was completed on 27 January 2010. We have been pleased with the performance of the business over the Christmas and New Year period. Work is now commencing to introduce selected Debenhams' brands into the six Magasin du Nord stores. We will update the market on the trading performance and our business plans for Magasin du Nord at the interim results presentation in April.
The business remains highly cash generative and net debt at the year-end is expected to be within the range of market forecasts.
Debenhams' interim results for the 26 weeks ending 27 February 2010 will be announced on 13 April 2010.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
