Under pressure Debenhams Group is delaying issuing refunds for up to a month a report has claimed. But the business also had good news this week with a sales and search surge for high-summer products.
The company, which used to be known as Boohoo Group and owns brands such as Boohoo, Debenhams, Pretty Little Thing (PLT) and Karen Millen, said it saw a 500% uplift year on year in sales of some summer products during April and May and a 1,000% uplift in searches.
The start of summer-focused spending has come earlier this year, presumably spurred both by unusually warm weather in Britain and that weather putting consumers in the right frame of mind to shop for their international beach holidays.
The group said sunglasses have been a particularly strong category, up 180% year on year at Debenhams. Classic like Ray-Ban even saw a 500% jump, while month-on-month sales of cat’s eye sunglasses at PLT were up 46%.
Also reflecting shoppers buying for formal summer events, Karen Millen has seen a 17% year on year rise in sales of fascinators. Karen Millen also saw summer dresses rising 96% in May while PLT and Debenhams itself saw double-digit increases for items such as linen dresses and playsuits.
Other summer-focused items such as shorts rose 80% at Debenhams in April, with ‘bikini’ searches at Karen Millen up more than 1,000% in May. And festival-linked searches rose 40% at Boohoo last month.
Group CEO Dan Finley said: “This spring’s early heatwave has clearly shifted consumer behaviour, pulling forward typical summer purchasing patterns. Shoppers aren’t just browsing, they’re buying – and it’s happening weeks ahead of the usual curve. From skincare to garden living, it’s a reminder of how quickly shoppers respond to seasonal signals.”
Now for the refunds issue. The company is reportedly conserving cash as it works to refinance amid falling sales.
The Telegraph reported shoppers complaining on social media about slow refunds despite sending their items back up to four weeks earlier. The firm’s webstores say refunds can take up to 14 days from the date orders were sent back.
A company spokesperson confirmed to the newspaper that refunds were slower than usual without giving a reason and said it’s “working to resolve that”.
It’s unclear whether the situation is connected to the group’s current talks on refinancing. It’s negotiating the replacement of up to £175 million of borrowing with expectations that any new loan commitments are likely to come with higher interest rates.
Earlier this year it had reported a 16% sales fall across the group in the year to March.
While there’s no evidence that the refund delays are linked to the firm’s cash situation, when a business is under pressure, such delays are clearly not a good look.
Clive Black, a retail analyst at Shore Capital, told the newspaper that both customers and investors will be aware of the slow refunds and “it will ring the alarm bell… It can be very brand-damaging. It’s a sign of weakness”.
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