Debenhams (DBHSY) became the latest retailing stalwart to suffer from changing habits after Britain's second-biggest department store said it would close 10 locations and revamp several others as it scrambles to improve shopping experiences amid a surge in online spending.
In a move that mirrors efforts by its American cousin, Macy's (M) , which announced 100 store closures last year, Debenhams said it would begin consultations on the shuttering of one central distribution center and around 10 smaller regional warehouses alongside the store closures. It will also look to exit some brands and non-core international markets.
"Our customers are changing the way they shop and we are changing too," CEO Sergio Bucher said in a statement. "Shopping with Debenhams should be effortless, reliable and fun whichever channel our customers use. We will be a destination for "Social Shopping" with mobile the unifying platform for interacting with our customers."
In fact, Debenhams has already started to offer more services like blow dry, manicure and eyebrow grooming bars.
Debenhams shares fell nearly 6% by mid-day in London to change hands at 52.04 pence each, valuing the group at just under £640 million ($820 million).
The announcement came alongside its results for the 26 weeks to March 4, which saw same-store sales up just 0.5% in its core U.K. market. Pre-tax profit fell 6.4% to £87.5 million compared with last year. Group Ebitda decline by 2.5% to £149.1 million for the group and down 6% in the U.K.