Biz/Tech

Debenhams Shares Floor Space with Mothercare to make Stores Look More Attractive

Oct 08, 2014 01:07 AM EDT | By Flynna Sarah Molina

The brand hopes consumers will be attracted by the new name on the floor rather than the markdown and promotions

Debenhams is giving floor space to the famous Mothercare and Monsoon as it makes changes to the shops and make it more attractive to shoppers, without having to run promos.

The department store has confirmed with the agreement on other brands like Costa Coffee and Sports Direct, as the chief official is trying to get shoppers from going on discount days just to increase sales.

It has been struggling to keep up with John Lewis, the largest department store group in Britain, which has done better its competitors due to its solid website, appealing shops and more wealthy consumers.

Dire Christmas trading reconsider Debenhams with Sharp telling the City early part of 2014 that almost 10% of the floor space, can be more profitable by putting new names and services. Sports Direct groups have already put up in Debenhams units in Southsea and Harrow.

Run as trial, Mothecare items have launched in Manchester and Croydon however it will also reach in Debenhams' Leeds shop by next week. The space given to the buggies-to-bibs shop in Manchester is as huge as its standalone units.

The combo with Mothercare is something intriguing according to the director and will have similar post of Debenhams later of the year. Mothercare has been facing its own struggles. The new superior has introduced rights issues as it seems to trigger a war chest to close low-performing branches and change its old systems. Investors will cast vote on the fundraising strategy with the brand's major shareholders thought to support the move.

Debenhams' agreement with Sports Direct is difficult due to the sportswear financial coverage on the entity. Mike Ashley says over 11% of the company after buying almost 5% stake in the previous week. The acquisition happens after a deal, closed last January, that can give Sports Direct about 7% stake on the following year if the Debenhams share price drops.

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