Will Mander Centre's Debenhams benefit from valuable opportunity?
While the closure of Beatties is a bitter blow for Wolverhampton, the move by its owner House of Fraser to halve its estate of department stores could provide a valuable opportunity to its biggest rival.
The Debenhams chain has also suffered from flagging sales this year, while half-year profits plunged 85 per cent to £87.8 million in the six months to March 3.
As a result it has started shifting its focus away from fashion towards beauty products and gifts.
But the removal of 31 House of Fraser stores early next year could provide a much-needed respite for Debenhams in an increasingly tough and competitive retail world.
In Wolverhampton Debenhams’ store opened in October last year in a newly built anchor site in the Mander Centre, just at a time when woes for department stores nationwide started to hit their peak.
The loss of Beatties would leave this store as the dominant retail destination in the city. Debenhams itself would not comment on the impact the House of Fraser closures might have on its business.
However, retail expert Prof Chris Edger said: “Debenhams will expect a certain level of transfer of custom from Beatties.
"But if they want to maintain, and indeed build on any of that migration, they will need to look at making their stores more of a thrilling shopping experience and more on-trend.
"Clearly everyone in Wolverhampton will be keen to see new tenants in the Beatties building as quickly as possible, but in the meantime the people who will benefit are Debenhams.
"They will undoubtedly see this as a big opportunity.”
The Beatties and House of Fraser stores will close early in the new year, as long as the company’s rescue plan gets the approval of its landlords and creditors at a meeting on June 22.
At least 75 per cent of them need to back the plan, or it will fail to pass.
If that happens House of Fraser could well be placed in administration, which could in turn mean even faster closure of stores unless a new buyer can be found.
