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DEBENHAMS

Debenhams plc is a British multinational retailer operating under a department store format in the
United Kingdom and Ireland with franchise stores in other countries. The company was founded in
the eighteenth century as a single store in London and has now grown to 178 locations across the
UK, Ireland and Denmark. It sells a range of clothing, household items and furniture and has been
known since 1993 for its 'Designers at Debenhams' brand range.
Headquartered in Regent's Place in the London Borough of Camden, Debenhams is listed on
the London Stock Exchange and is a constituent of the FTSE 250 Index. The company owns the
Danish department store chain, Magasin du Nord, and has a subsidiary in Ireland.

PRODUCTS AND SERVICES


In 1993 the company introduced the 'Designers at Debenhams' brand, the creation of then
CEO Belinda Earl, Ben de Lisi and Spencer Hawken. The idea put designer names and brands
at High Street prices, including Jasper Conran, John Rocha, Betty Jackson Black, Butterfly
by Matthew Williamson, H! by Henry Holland, Star by Julien Macdonald, Frost French, Erickson
Beamon, Eric Van Peterson, Janet Reger, Pip Hackett, Melissa Odabash, Ted Baker, St George by
Duffer, Jeff Banks, and Ben de Lisi. The brand Designers at Debenhams was the saving grace for
the company which had been in decline since the late 1980s. The company also sells goods under a
number of brand names that it owns.
In October 2010, Debenhams announced the launch of four new designer names to its fashion
range; Jonathan Saunders, Preen, Jonathan Kelsey, and Roksanda Ilincic, who will be working with
the retailer on a new concept called Edition.
Stores also contain concessions whereby other retailers may trade from. Brands in stores
include Oasis, Coast, Phase Eight and Warehouse. In June 2014, the company announced a trial of
Sports Direct concessions in its Harrow and Southsea stores, which if successful would be
expanded to other stores. This followed the purchase of a stake in Debenhams by Mike Ashley, the
owner of Sports Direct, in January 2014. Later that year, Debenhams also launched trials of Costa
Coffee and Mothercare concessions within stores.
The company operates retail websites in the UK and Ireland, as well as a mobile-enabled website
and mobile apps that allow customers to shop the online range and scan product barcodes in
store. An international version of the website also allows customers to shop the company's range
from a further 64 countries.
Debenhams provide store card and credit card services, operated by NewDay. Insurance products
are also provided under the Debenhams brand by other financial companies. Debenhams also
operate bureaux de change in selected stores. The company also operates a loyalty card
programme, branded the Debenhams Beauty Club, where customers can collect points with the
purchase of health and beauty products.
In October 2013 the company launched an online ticket service known as Debenhams Box
Office, powered by a number of ticket providers, including notable primary ticket outlets such
as Skiddle.

OVERVIEW
Debenhams
Parent Company

Debenhams

Category

Retail

Sector

Lifestyle and retail

Tagline/ Slogan

Life made fabulous

USP

A multi-brand retail store


STP

Segment

Style and premium class

Target Group

Upper middle class individuals

Positioning

Style that differs you


SWOT Analysis

Strengths

1. High brand equity in fashion world and high brand recall among
consumers
2. Company has stores spread in UK, Ireland and Denmark with 150+
stores and presence in around 40 countries
3.Company has strength in merger and acquisitions of companies

4. Strong multi-brand retail stores with excellent customer services


5. Products and services include Fashion clothing, shoes, accessories,
cosmetics, home and furniture, electricals, gifts, toys
6. Nearly 30,000 employees are working for it
Weaknesses

1. Presence of many retail stores makes the market share capture slow
2.Brand has not tapped all types of customer segments and has limited
global geographic presence

Opportunities

1. Franchise model would help company spread to make global presence


2.High opportunity to spread in European territories
3.Cunsumers preferences and choices evolving at a fast pace in fashion
industry
4.Franchise model could help the customers to spread globally

Threats

1.High competition from domestic players in fashion industry


2. Rising prices of raw commodities would increase input costs
3.High brand awareness and choice for specific products could lead to
brand switching
Competition

Competitors

1. 99p stores
2.Demon Tweeks
3.Derann
4.Dunelm mill

CONSUMER PROFILE
This statistic displays the age distribution of customers at Debenhams in the United Kingdom as of
2015. According to their annual report, 20 percent of Debenhams customers are in the age group
45-54.

This statistic displays the demographic distribution of customers at Debenhams in the United
Kingdom as of 2015. According to the annual report, 35 percent of Debenhams customers were
classed under the demographic group AB (middle class and upper middle class). This group
represented the second largest customer group behind C1 (lower middle class).

CSR
As a retail business, Debenhams activities can impact the lives of millions of
people: the customers, the employees, the communities in which operation takes
place, those who work in the supply chain and their own communities. The company
is aware of their responsibility to all these people and to the planet to try to have a
positive impact upon them and to take their needs into account when decisions are
made about the business.
They believe that the best way to live up to these responsibilities is to embed them
into their everyday working practices. Therefore, they do not have a corporate
responsibility or sustainability department. Instead, accountability and responsibility
rests with those who best understand how and why they can make a difference as
they execute the four pillars of their strategy to build a leading international, multichannel brand.

Supplier code of conduct


1.0 Introduction

We intend to work only with reputable suppliers and manufacturers so that when customers buy
goods from Debenhams, they can be assured that they have been produced under acceptable conditions.
"Acceptable conditions" means lawfully, through fair and honest dealing, without exploitation of the
people who made them, in decent working conditions and with regard to the environment.
The Code of Conduct is a statement of our most basic requirements, which must be met in order to
trade with Debenhams. A process of self-evaluation and independent inspection is in place, to assure its
proper and practical application.

The Code is designed to be ethical, achievable, auditable, universal and to promote the ongoing
development of Debenhams' sources of supply.
The Code applies to all suppliers of goods to Debenhams including any involved in subcontracted
processes, referred to as 'suppliers'. It is the minimum standard that Debenhams will accept.

2.0 Legal Requirements

The provisions of the Code constitute minimum and not maximum standards, and the Code must not
be used to prevent companies from exceeding these standards.
Companies applying the Code are expected to comply with national and other applicable law and
where the provisions of law and the Code address the same subject, to apply that provision which affords
the greater protection.

3.0 Employment
3.1 Living wages are paid

Wages and benefits paid for a standard working week meet, at a minimum, national legal standards
or industry benchmark standards, whichever is higher. In any event wages should always be enough to
meet basic needs and to provide some discretionary income.
All workers shall be provided with written and understandable information about their employment
conditions in respect to wages before they enter employment and about the particulars of their wages for
the pay period concerned each time that they are paid.
Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions
from wages not provided for by national law be permitted without the expressed permission of the worker
concerned. All disciplinary measures should be recorded.

3.2 Working hours are not excessive

Working hours comply with national laws and benchmark industry standards, whichever affords
greater protection.
In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week
and shall be provided with at least one day off for every 7 day period on average.
Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a
regular basis and shall always be compensated at a premium rate.

3.3 Employment of children

Child labour shall not be used and there shall be no new recruitment of child labour.
Companies shall develop or participate in and contribute to policies and programmes that provide
for the transition of any child found to be performing child labour. This will enable him or her to attend
and remain in quality education until no longer a child.
Children and young persons under 18 shall not be employed at night or in hazardous conditions.
The policies and procedures relating to employment of children shall conform to the provisions of the
relevant International Labour Organisation (ILO) standards.
The following are the definitions to be used for the above:
'Child': Any person less than 15 years of age unless local minimum age law stipulates a higher age for
work or mandatory schooling, in which case the higher age shall apply.
'Young Person': Any worker over the age of a child as defined above and under the age of 18.
'Child Labour': Any work by a child or young person younger than the age(s) specified in the above
definitions, which does not comply with the provisions of the relevant ILO standards, and any work that is
likely to be hazardous or to interfere with the child's or young person's education, or to be harmful to the
child's or young person's health or physical, mental, spiritual, moral or social development.

3.4 Employment is freely chosen

There is no forced, bonded or involuntary prison labour.


Workers are not required to lodge "deposits" or their identity papers with their employer and are free
to leave their employer after reasonable notice.

3.5 Disciplinary practices

No harsh or inhumane treatment is allowed. Physical abuse or discipline, the threat of physical
abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited.

3.6 No discrimination is practised

There is no discrimination in hiring, compensation, access to training, promotion, termination or


retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual
orientation, union membership or political affiliation.

3.7 Freedom of association and the right to collective bargaining are respected

Workers, without distinction, have the right to join or form trade unions of their own choosing and to
bargain collectively.
The employer adopts an open attitude towards the activities of trade unions and their organisational
activities.
Workers representatives are not discriminated against and have access to carry out their
representative functions in the workplace.
Where the right to freedom of association and collective bargaining is restricted under law, the
employer facilitates, and does not hinder, the development of parallel means for independent and free
association and bargaining.

3.8 Regular employment is provided

To every extent possible, work performed must be on the basis of recognised employment
relationship established through national law and practice.
Obligations to employees under labour or social security laws and regulations arising from the
regular employment relationship shall not be avoided through the use of labour only contracting,
subcontracting, or home-working arrangements, or through apprenticeship schemes where there is no
real intent to impart skills or provide regular employment, nor shall any such obligations be avoided
through the excessive use of fixed-term contracts of employment.

4.0 Working conditions are safe and hygenic

A safe and hygienic working environment shall be provided, bearing in mind the prevailing
knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent
accidents and injury to health arising out of, associated with, or occurring in the course of work, by
minimising, so far as is reasonably practicable, the causes of hazards inherent in the working
environment.
Workers shall receive regular and recorded health and safety training, and such training shall be
repeated for new or reassigned workers.
Access to clean toilet facilities and to potable water, and if appropriate, sanitary facilities for food
storage shall be provided.
Accommodation, where provided, shall be clean, safe and meet the basic needs of the workers.
The company observing the code shall assign responsibility for health and safety to a senior
management representative.

5.0 Environment
Suppliers must manage all waste that they generate in accordance with local laws or in such a way as
to avoid harm to the environment or the local population.
Suppliers must comply with the relevant Debenhams policies listed below:

Animal Testing
Genetically Modified Organisms
Leather and Hides
Renewable Timber Sources
Safer Chemicals

In addition suppliers must comply with the packaging guidelines:

Garment Shrouding Guidelines


Accessories Shrouding Guidelines
Home Packaging Guidelines

6.0 Worker representation

Suppliers must have confidential procedures which allow worker representation for any issue
concerning the labour standards referred to in the Code and which will enable protection for all workers
and participation by workers who may be vulnerable, such as women and adolescents.

7.0 Monitoring
Suppliers must provide details of the factory producing goods for Debenhams and ensure that all

reasonable access to the factory premises is allowed to Debenhams staff and their representatives for
the purpose of monitoring, inspecting and assessing the implementation of the Code.
Senior management of suppliers must be appointed with responsibility for ensuring that:

All their component suppliers and subcontractors are aware of and comply with the Code.
Records are kept and made available to evidence that notification of the Code has been given and
regular reviews and auditing have been undertaken.

8.0 Inspection and assessment

Debenhams staff or their representatives may make unannounced inspections of factories producing
goods for Debenhams.
Suppliers must ensure that Debenhams are provided with all information necessary to allow
implementation and verification of compliance with the Code.
Information obtained will be used in confidence.

9.0 Sanctions

Compliance with the requirements of the Code will be monitored and the results notified to the
relevant suppliers.
In the event of failure to achieve the standards, a supplier may be given the opportunity to achieve
them within a reasonable time to be agreed with Debenhams.
Whilst Debenhams will strive to ensure that all corrective actions are resolved through a successful
partnership with suppliers and factories, if at the end of that agreed time, standards are still not
achieved, depending on the severity of the failure, Debenhams may stop trading with the supplier
concerned.

10.0 ILO Conventions


The Code of Conduct has been drawn up with reference to the International Labour Organisation
Conventions and Recommendations listed below.

ILOC

1
Hours of Work (Industry) Convention, 1919

ILOC

26
Minimum Wage-Fixing Machinery Convention, 1928

ILOC

29
Forced labour Convention, 1930

ILOR

85
Protection of Wages Recommendation, 1949

ILOC

95
Protection of Wages Convention, 1949

ILOC

98
Right to Organise and Collective Bargaining Convention, 1949

ILOC

100
Equal Remuneration Convention, 1951

ILOC

105
Abolition of Forced Labour Convention, 1957

ILOC

111
Discrimination (Employment and Occupation) Convention, 1958

ILOR

111
Discrimination (Employment and Occupation) Recommendation, 1958

ILOC

131
Minimum Wage Fixing Convention, 1970

ILOC

138
Minimum Age Convention, 1973

ILOR

146
Minimum Age Recommendation, 1973

ILOC

155
Occupational Safety and Health Convention, 1981

ILOR

164
Occupational Safety and Health Recommendation, 1981

Articl
e

32
UN Convention on the Rights of a Child

Disabled Access
Debenhams confirms commitment to making problem older stores accessible for disabled people
Debenhams has signed a formal agreement with the Disability Rights Commission (DRC) to provide disabled
access in all its retail stores in England.
The formal agreement commits Debenhams to have in place suitable means for disabled customers to
access previously inaccessible mezzanine floor areas in its stores within three months from the date of the
agreement (July 25th 2006). Debenhams will deliver a written report to the DRC on the measures it has
implemented.
It follows the legal action taken against Debenhams by Greg Jackson, a 43-year old wheelchair user, in July
2005. Mr Jackson had been denied access to the mezzanine section of the menswear department in its Derby
store which could only be reached via a set of steps. His case was supported by the DRC.
This represents the first formal agreement undertaken by a major retailer since the introduction of Part 3 of
the Disability Discrimination Act (DDA) in October 2004.
Mr Jackson commented on the new agreement:
"I'm very happy today because now I can visit my local store to buy clothes and receive the same service as
other shoppers. That is all that I wanted and by using the DDA and with this agreement it is what all disabled
people can expect in future."
Bert Massie, Chairman of the DRC, said:
"The formal agreement signed by Debenhams to resolve Mr Jackson's case is very important because it
underlines the extent of the responsibilities for large retailers regarding what is reasonable under the
requirements of the DDA. Debenhams now has a centrally managed action plan to provide independent
access in all of its stores in England where disabled people, including Mr Jackson, experience difficulty
getting up to mezzanine floor levels. This sends a strong signal to all high street retailers that it's
unacceptable to provide a second class service for disabled people. We are not second class citizens."
A Debenhams' spokesperson said:
"We have today confirmed in a statement to the Disability Rights Commission Debenhams' continuing
commitment to providing disabled access to products situated on all floors in its stores throughout the
country.
In particular Debenhams has provided access platforms to the mezzanine floors in its Derby store and will
resolve all issues of accessing mezzanine floors for its disabled customers in a further 17 stores with similar
access issues at a cost of more than 300,000".
County Court proceedings issued by Mr Greg Jackson (represented by the Disability Rights Commission) will
not now be pursued.

Ethical and environmental trading policies


1.0 Animal Testing Policy

Debenhams will not accept any products, which were tested on animals after 1st January 1998.

Debenhams will not accept any products, which contain any ingredients or combination of
ingredients, which were tested on animals after 1st January 1998.
Any ingredient, which was tested on animals before 1st January 1998, must not have been re-tested
on animals since 1st January 1998.
Suppliers must provide evidence to substantiate this and the base set data must be sent to
Debenhams.

2.0 Genetically modified organisms (GMO) policy

All Debenhams products must be GM free.


This means that the ingredients do not contain any protein or DNA derived from a genetically
modified source. This applies to food and non-food products.
Suppliers of food products to Debenhams must complete the Food and Drink Product Specification.
Upon request, non-food product suppliers may be required to confirm compliance with this policy in
writing.

3.0 Leather, hides and furs policy

All hides used in the production of Debenhams merchandise must be a by-product of the food
industry and suppliers must produce and maintain evidence to illustrate this.
Debenhams supports the humane treatment of all animals used in the production of leather. This
includes transportation to abattoirs and quick and efficient slaying.
Debenhams does not permit the use of any fur, or any skins of snake, crocodile, alligator or any
species specified in the IUCN Red List of Threatened Species in any of our own bought products.

4.0 Renewable timber sources policy

Debenhams will only accept timber and timber products from sustainable and well-managed
sources.
By timber products Debenhams means all timber-inclusive or timber-derived products including
fibreboard, wood pulp, paper, cellulose, charcoal etc.

4.1 Verification of well-managed forests

This procedure will include:


forest certification to standards which are internationally recognised and supported by
environmental organisations.
''chain of custody'' certification.
''Chain of custody'' certification is the independent auditing of every stage through which the timber
passes, i.e. from forest to distributor. This confirms that the wood materials used to make a product come
from forests which have been certified as ''well-managed'' The chain of custody certificate for a book
would be a statement of authenticity, which might cover the following stages:
Forest source
Logging process
Sawmill
Pulping process
Paper manufacturing process
Printing process
Distribution

4.2 Verification of recycled products

Suppliers must produce and maintain evidence to illustrate the original composition of the material,
the percentage recycled and the sources.

5.0 Safer chemicals

This policy covers all Debenhams own bought merchandise, packaging and merchandising aids and
all these items must comply with the relevant regulations.
Debenhams will implement any change in the law or recommend the use of safer alternatives if they
become readily available.
Some chemicals are already banned by Debenhams in own bought products and this classification
will not change.
Debenhams will discuss the Safer Chemicals Policy with branded suppliers and concessions and
encourage them to adopt it.

5.1 Details of Chemicals which are Not Permitted by Debenhams


5.1.1 Azo dyes

The use of Azo dyes is not permitted in Debenhams own bought products.
Azo dyes can be used in a number of products e.g. clothing, bedding, towels, hairpieces, hats,
nappies, sanitary items, footwear, gloves, wristwatch straps, bags, textiles, leather, toys and carpets.
There are 23 azo dyes of concern. These are listed below:
Biphenyl-4-ylamine 4-aminobiphenyl xenylamine
Benzidine
4-chloro-o-toluidine
2-naphthylamine
o-aminoazotoluene 4-amino-2',3-dimethylazobenzene 4-o-tolyazo-o- toluidine
5-nitro-o-toluidine
4-chloroaniline
4-methoxy-m-phenylenediamine
4,4'methlenedianiline 4-4'-diaminodiphenylmethane
3,3'-dichlorobenzidine 3,3'-dichlorobiphenyl-4,4'ylenediamine
3,3'-dimethoxybenzidine o-dianisidine
3,3'-dimethoxybenzidine 4,4'-bi-o-toluidine
4,4'-methylenedi-o-toluidine
6-methoxy-m-toluidine p-cresidine
4,4'-methylene-bis(2-chloroaniline) 2,2'-dichloro-4,4'methylene dianiline
4,4'-oxydianiline
4,4'-thiodianiline
o-toluidine 2-aminotoluene
4-methyl-m-phenylenediamine
2,4,5-trimethylaniline
o-anisidine 2-methoxyaniline
4-aminoazobenzene
Navy Blue 018112 (ELINCS No.405-665-4)

5.1.2 Artificial musks


The use of real or nitro and polycyclic artificial musks is not permitted in Debenhams own brought
products.

Artificial musks are fragrances used in laundry detergents, perfumes, toilet cleaners, shaving foam,
washing up liquid and cosmetics.

There are three main groups of artificial musks.

nitro

polycyclic

macrocyclic

The use of Macrocyclic musks is under review.

5.1.3 Phthalates

All Debenhams own bought merchandise must be phthalate free which means the total amount of
plasticisers in any product must not exceed 0.1% by weight

Phthalates are plasticisers that are used to soften PVC.


They can be found in goods such as computers, paints, printing inks, adhesives, cosmetics,
footwear, stationary, clothing and toys.
There are six phthalate plasticisers of concern these are:
di-isononyl phthalate (DINP)
bis (2-ethylhexl) phthalate (DEHP)
di-n-octyl phthalate (DNOP)
di-isodecyl phthalate (DIDP)
butylbenzyl phthalate (BBP)
di-butyl phthalate (DBP)

The method of analysis is detailed in Phthalate Content Test Method.


5.1.4 Heavy Metals
5.1.4.1 Levels
The level of heavy metals has been phased out in the Packaging Waste Regulations (SI 1998 1165).
The total content of each of the following heavy metals in all packaging waste must not exceed
100ppm.

Cadmium
Hexavalent Chromium
Lead
Mercury

5.1.4.2 Nickel

All Childrenswear components must be 'nickel free' and must contain no more than 0.01% nickel
(100ppm). Test Requirement: BS EN 1810:1998.
Any metal or metal coated item which is in direct or prolonged contact with the skin must conform to
the Nickel Directive (76/769/EEC) 2000. In addition to complying with the Nickel Directive all
Childrenswear Components must comply to 0.05%Ni (by weight) 100pm in any component part.

6.0 Conflict Diamonds

It is the Suppliers responsibility to guarantee that all diamonds used for Debenhams products are
conflict free:

Rough Diamonds sourced for Debenhams production must have been procured and certified in
compliance with the Kimberley Process.
Finished diamonds sourced for Debenhams production must have been purchased from legitimate
sources not involved in funding conflict, in compliance with United Nations resolutions and the supplier
must hold on file warranties confirming the conflict free status of gems used for Debenhams production
for 3 years from point of discontinuation.

REFERENCES
1. http://www.mbaskool.com/brandguide/lifestyle-and-retail/5225debenhams.html
2. http://www.debenhams.com/en-in
3. https://en.wikipedia.org/wiki/Debenhams#Products_and_services
4. https://www.statista.com
5. http://fashiongear.fibre2fashion.com/brand-story/debenhams/corporatesocial-responsibility.asp
6.

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