Personally, competitors “co cheer” according to (, January

Personally, I think the future for Debenhams is looking likeit is going to be online based, if new strategies are not increasing sales andshares. I also feel Brexit has taken a toll on the company, as the prices havebeen decreasing since the Brexit vote (June2016) , making the value of thepound weaker, being an advantage for tourists as it is cheaper for them.If I could have gone back I would have changed my sharesfrom Debenhams. The company itself usually does well, and I expect it to pickitself back up after going through turmoil with the shares, but it seems thisyear it has lasted longer with less shares. I would have chosen an onlineretailer such as ASOS, they have a large customer audience and their chartsshowing how much increase they have been making already in 2018 (ASOS PLC,londonstockexchange.

com January 2018). as e-commerce has rapidly grown over theyears and has become more popular than the stores, as consumers find it muchcheaper and efficient.Debenhams competitor, Marks and Spencer have been quitesuccessful in their shares, however also taking a dip down in early Decemberalong with Debenhams, picking majorly picking it up near Christmas also. At theend of Christmas Debenhams and its competitors “co cheer” according to(independentnews.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now, January 2018) Debenhams just won over marks and Spencer’swith sales rising to 3.5% like-to-like sale and marks and spencer’s with just2.3% like-to-like sale. Marks and spencer have decided to expand on theironline grocery services with better “availability and ranges”(

uk January 2018), to compete with new competitors. Comparison           According to ‘The Guardian’ in recent news, “Debenhams cutsjobs and store are closures likely after disappointing sales.” (, January 2018). Shares haveconsiderably dropped by 15%, the lowest they have been since 2008.

However, theonline sales grew up to 21.4% days before Christmas (, January2018).

To replace the loss of the stores Debenhams will have to focus onimproving their online shopping. As e-shopping has developed over the years andconsumers can now ‘shop on the go’ with their smart phones.Overall, the graph shows, the unsustainability of theshares. There was a minor fluctuation during December where it reached to itshighest of 85.79 shares, through late Christmas period, that only remained aspeak as it did for less than a week. The shares slowly started to dramaticallydecrease after Christmas and into the new year. From the start of monitoringthe shares, Debenhams never managed to match with the FTSE 100 index andcontinued to decrease from October.

           Findings         There is a low threat towards Debenhams as it has beenestablished for a significantly long time and has gathered repeat business fromloyal customers, with a reputation as a British brand. For new competition itwill take them a while to gain customer trust.Threat of newentry For Debenhams this could be a customer switching to anothercompany that offers the same products and services, affecting the business’performance profits.

Threat ofsubstitutionCustomers take control and demand supply. if competitorshave cheaper prices they would go to the opposing store instead, therefore forDebenhams to remain in the competition they must compete with their rival’ssales. Buyer power Debenhams source their products from suppliers functioningin 928 factories, with all diverse markets around the world(Sustainability., January 2018). The company has a set ofrules to ensure their suppliers are paid an equal wage and are not exploited.The requirements are merged into the supplier’s conditions of trading.(Sustainability., January 2018).Supplier power “Porters five forces are a tool for understanding thecompetitiveness of a business environment and for identifying potentialprofit.” (, January 2018). When you understand the forces, youwill be able to adjust your strategy according to where profit to be made(Mindtools.

com, January 2018). Competitive rivalry, Debenhams have 3 largerivals John Lewis, House of Fraser and their main one Marks as bothmultinational retailers are listed on the LSE. Evidentially the quality andservices of Debenhams exceeds those of their competitions scoring (3.7*) shownby their ratings, as their opponents are behind scoring Marks & Spencer(3.4*), John Lewis (3.4*), House Of Fraser (3.

2*) (, January2018).  Porters 5 forces Political- economicflexibility of multinational markets. Economic-UK economy does not assist in the performance of the retail area. Social- continuous growth in brandedshopping.

Technological- Constantincrease in online shopping and easier shopping with ‘click and collect’.PEST stands for Political, Economic, Social andTechnological. The analysis asses the full factors relating to your businesssituation. Helping you regulate how the factors will affect the long-termperformance of the business (, January 2018). PEST Analysis I see a lot of potential opportunities in Debenhams for the£15000 to be invested in. I imagine it to be used for a new strategy toincrease the sales, as the company continuously come up with approaches thatthe support sales. Debenhams are a highly customer focused brand that developtheir ideas into something that they will know customers will want and use.

Such as their new project to have an instore gym (,January 2018), which I believe will be successful as the stores are alreadyleisure oriented and now being expanded for fitness. This shows how well thecompany understands the business market, as they know to provide for customers firstand that they are the reason for company’s continued growth, knowing that profitswill thrive in return. Why invest in thecompany?The company’s net worth after taxes in 2017 was £49 millionand a turn over of £2.3 million (city (, January 2018).

A salesincrease of 13.9% has increased over the Christmas period, which onlineshoppers were responsible for, as many are turning digital to shop. The storechains had a rise of 3.5% in sales over 18 weeks, with a sustained number ofcosmetics being sold (Telegraph., January 2018).According Debenhams CEO Sergio Bucher”Debenhams is making a good progress with implementing our new strategy.”(

uk, January 2018). which is a great pick up by 3.3%,from last year as sales falling 1.

5% and the store shifting more towards onlinedistribution contributing to its sales rises (

uk, January2018).Debenhams is an international, British 18thcentury founded retailer, that operates in a department store format. With morethan 240 franchise stores in 27 countries including the UK and Ireland. Sellinga range of products, from homeware, clothing, health & beauty and aninstore restaurant (Debenhams.

com, January 2018). Throughout the yearsDebenhams have been in and out of the London Stock Exchange. Their firstjoining in 1998 and the most recent re-joining to LSE was in 2006, leaving froma private association named ‘Baroness Retail Limited’ that they had joined in2003 (, January 2018). When they remerged, Debenhams market sales increasedin the first 52 weeks from May to September by 6.6%, being a major contrastfrom previous year where they had only increased by 0.

5% (, January2018). Background of thecompanyFor this task I have been given £15,000 to invest in apublic listed company of my choice, within the London Stock Exchange.

I havechosen the company Debenhams. I will be comparing the business to its maincompetitors, monitoring the rate of its performance from 26thOctober 2017 to the 4th of January 2018, also analysing what wouldhave caused the variations of the price of and share value to change, which Iwill display on an excel spreadsheet and chart. The report will show medemonstrating the worth of the investment, whether it will prosper orfail.

  I will also be discussing thereason I chose this company and destructing it into certain factors to make itsimpler to understand where it is at now and differentiate the business. Stock Market Report Debenhams


I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out