Debenhams creates 4,000 jobs

Debenhams plans to open 11 new stores around the UK

Department store Debenhams plans to create 4,000 new jobs in the next four years by creating 11 new stores.

The new stores, which will measure about 100,000 square feet each, makes a major step into new areas for the group.

The new stores will be located throughout the UK, including East Kilbride, Edinburgh, Newcastle, Sunderland, Milton Keynes, Uxbridge, Oxford, Basingstoke, Birmingham and York.

They will be similar to Debenhams current department store format.

"This is virgin territory for us. It will be taking us into areas where we have never been before," said the company's finance direct Matthew Roberts.

Debenhams is the UK's third largest department store in terms of sales, behind Marks & Spencer and John Lewis.

Overseas expansion

It also has operations in the Middle East and Eastern Europe and plans to expand further steadily overseas.

"We want to grow and will achieve this through site by site acquisition," Mr Roberts said.

The company also said it sales in the last 10 weeks had risen 6.6% from the previous year, due to strong demand for clothes.

In the 20 weeks to 15 July, sales were up 3.3%.

The store group is currently trying to strengthen its home and entertainment departments and reduce its dependence on the highly-competitive clothing sector.

"We believe that the ongoing improvement in like-for-like sales over the last six months endorses our strategy and we are confident that we can continue to achieve robust levels of growth," said Debenhams chairman Peter Jarvis.

Weather boosts sales

However, analysts said the wet and windy British summer may be one of the main reasons

But Mr Roberts put the improvement in sales down to a strong performance by over 50 own brands, an increase in advertising, which has risen to £10m this year, and more competitive pricing.

The company also reported improved internet and home sales.

Internet sales are expected to be more than £5m in their first year, while the company plans to double distribution of its Direct Home Shopping catalogue to more than 300,000 this autumn.