Debenhams, Britain's number two department store group, claimed it was winning market share from rivals as it posted a small rise in sales over the key Christmas trading period that was hit by December's snow.
Chief executive Rob Templeman said he was pleased with the firm's Christmas performance given the adverse weather that gripped the UK and Ireland last month but would not commit to forecasting underlying sales growth for the balance of the firm's year to the end of August 2011.
Many UK retailers fear the £81 billion sterling of spending cuts announced by the UK government, as well as tax rises, a slowing housing market and hikes in transport and fuel costs will hit consumer demand in the months ahead.
But Templeman said he was hopeful Debenhams, ranked second after employee-owned department store group John Lewis, would benefit in 2011 from the shift in the previous financial year of over 530,000 square feet of trading space from concessions to its own products, as well as new store openings, growth online and overseas.
Debenhams, which trades from 167 stores in Britain, Ireland and Denmark, and about 60 franchised outlets in 23 countries, said sales at stores open more than a year increased 0.3%, including VAT sales tax, in the 19 weeks to January 8.
That compares with analysts' forecasts in a range of up 1% to down 5% and flat like-for-like sales in the previous 12-month period. The firm said December's snow impacted like-for-like sales by 2.5-3%, or about £30m.
Several British retailers including Next, HMV and Mothercare last week blamed the coldest December since records began in 1910 for big falls in Christmas sales. But some analysts argue that, while important, the snow has not been the full story, and may be masking long term problems.
Separately, rival department store retailer House of Fraser today reported like-for-like sales up 8.5% over the five weeks to January 8, while British online and home shopping group Shop Direct reported a 5% rise in Christmas sales, in spite of the severe weather.
Supermarket group Morrison's also today posted a modest increase in festive sales, while online grocer Ocado posted a 27% rise in December sales.
