Debenhams Trials Costa And Sports Direct Outlets

Debenhams (Other OTC: DBHSY - news) is to trial Costa Coffee and Sports Direct (Frankfurt: A0MK5S - news) concessions in its department stores.

The company made the announcement as it released its third quarter sales figures.

It said like-for-like sales in stores opened more than a year were up 0.7% in the 14 weeks to June 7.

The company said it would also refocus strategy on selling higher priced items to help boost revenue.

It also said that its annual summer sale would be shortened, with it commencing two weeks later than usual.

Debenhams said two stores will get Sports Direct sporting goods concessions in August, with potentially more to follow before Christmas.

Costa (NasdaqGS: ATX - news) coffee, which is owned by Whitbread (LSE: WTB.L - news) , will launch in six stores within six weeks.

"We'll do those trials and see where we go from there," Debenhams chief executive Michael Sharp said.

"There are also some other retail brands that we continue to talk to."

Mr Sharp declined to reveal what other brands may be offered concessions.

Debenhams has seen a tough 12 months of trading.

It issued its second profit warning in less than a year last December.

It also lost its finance chief after an existing strategy of promotions failed to boost its crucial Christmas sales.

In April the 200-year-old firm reported first-half profit down by a quarter.

Chief executive Michael Sharp said he planned to reduce promotions and boost online presence, including an improvement to delivery options.