UK department store Debenhams has announced plans to increase its international presence by launching to the Australian market in 2016.
The move comes off the back of an agreement with local market partner Pepkor, which is part of global retail giant, Steinhoff Group.
A staggered approach will see Debenhams enter the southern hemisphere for the first time with a dedicated Australian ecommerce site to launch prior to Christmas this year. The platform—which will be the retailer’s first region specific site—will offer product tailored to the local market and payment in Australian dollars.
Debenhams’ own brand womenswear, accessories and menswear will then be distributed within select Pepkor-owner Harris Scarfe stores from October 2016. Future plans include the launch of Debenhams branded franchise stores offering the full product range including fashion, cosmetics and home.
“International expansion is one of our key strategic priorities and we believe that the Australian market holds a lot of potential,” says Debenhams chief executive Michael Sharp. “Our product range translates well and many consumers are aware of our brands and designers. We are excited to deliver a business model which includes distribution, franchise and ecommerce channels.”
Jason Murray, managing director of Pepkor South East Asia, is excited about the partnership that he says will be mutually beneficial.
“The wholesale arrangement will augment our efforts to revitalise and grow the Harris Scarfe business, while the franchise stores will complement our Harris Scarfe stores and add to our back office scale.
“These stores will be contemporary, smaller scale flagships which we believe will be Australia’s first genuine modern department stores. Graham Dean, CEO of Harris Scarfe, and his team bring deep UK and Australian department store experience to this venture.”
Debenhams currently has 248 stores across 28 countries. The company plans to grow its international business to around 30 per cent of the total through franchise expansion, international online growth and distributing brands beyond Debenhams franchise markets.
By Ruth Cooper
