By Petah Marian
Debenhams has demanded its suppliers accept a 2.5% discount on goods just seven days before Christmas.
The department store operator’s chief financial officer Simon Herrick told suppliers in a letter on Monday that it would take the discount off all outstanding payments on 17 December and a 2.5% discount on all open orders on the system on 17 December.
It said the contribution would be put towards its recently completed £25 million Oxford Street flagship revamp, as well as towards modernising 44 UK stores over the past three years, with plans to update the remaining 19 over the next two years.
The discount will also be used to fund its online efforts and building its franchise store network.
“As we will mutually benefit from the growth of Debenhams we are now seeking a contribution from our suppliers to support our commitment to ongoing investment,” the letter said.
In October, the retailer saw full year profit slip 2.7% to £154 million over the year ended 31 August as group sales increased 2.5% to £2.7 billion.
Debenhams stocks a range of watch brands, including Rotary, Lorus, Ben Sherman, Diesel, DKNY and Fossil.