Retail giant Debenhams who trade in Beverley at the out of town retail park, Flemingate have issued a profit warning that could see the company close stores and lead to job losses.
Debenhams, who opened in October 2015 and were a ‘key name’ for the retail park blamed a bad Christmas that has seen their profits fall and share price plummet.
News that the company was not going to meet is forecasted profits saw £70m wiped off the value of the business leading to more speculation over store closures and job cuts being brought forward.
Debenhams’ chief executive, Sergio Bucher says he remains optimistic that the company can be turned round and they have seen an increase in food and beauty based sales.
The CEO of the business also said that the company is looking to reduce its costs by £10m in 2018 and will achieve this by axing stores and cutting jobs as they ‘simplify’ their management structure.
Retail experts say Debenhams problems are not just linked to a bad festive period but to the companies strategy of using sub-optimal goods to get people into stores and to their web site.
News of the problems faced by Debenhams comes just weeks after another multinational trader who operates in Beverley, Poundland, who also have an outlet at Flemingate saw the value of their business fall.
When opened, Debenhams in Beverley was hailed as a new period for retail in the town and was a used a the key anchor store by developers, The Wykeland Group for luring other businesses to the new development.
With stores in neighbouring Hull and York and increasing competition to win foot fall from nearby and more established retail parks Kingswood and Monks Cross.
This news does raise legitimate questions and concerns over the future of Debenhams in Beverley.
