Debenhams is cautious about influence of major events

Despite rivals including John Lewis and Marks & Spencer highlighting possible sales boosts from the raft of events, Sharp is more cautious about their effect.

“To be perfectly honest, I think it is unclear as to the impact that those events will have,” he said.

“I’d like to think the Jubilee will have a feel-good factor, certainly the royal wedding did last year. But I know from past experience that European or World Cup football can be disruptive because it distracts spending into burgers, barbecues and TVs away from clothing and I have no understanding of what impact the Olympics will have at all.”

Sharp was speaking after Debenhams posted an improving sales performance in its first half, showing its resilience in tough conditions in the retail sector.

With a wide range of products from designer clothing to lipsticks, the firm – which has 170 stores across Europe, including 12 in Scotland – has fared better than most during the downturn.

The strategy of Debenhams, the UK’s second-largest department store chain after John Lewis, is to drive profits by investing some of its gross margin, through price cuts and promotions, into pushing sales.

Like-for-like sales, excluding VAT, rose by 0.3 per cent in the 26 weeks to 3 March, ahead of analysts’ forecasts for a 0.2 per cent increase. Sales in the past eight weeks are up 2.4 per cent.