Debenhams is looking to cut costs as it reviews its options for Magasin du Nord

Debenhams is looking to cut costs as it reviews its options for Magasin du Nord

Debenhams has said it is reviewing its options on its Danish operations Magasin du Nord as the UK department store retailer looks to cut costs.

The retail group, which just days ago issued its third profit warning this year, is reported to be looking into the possibility of offloading its Magasin Danish department store fascia in order to cut costs and raise cash.

Magasin du Nord currently has six stores, and Debenhams had planned to open a seventh in 2018. The company had bought the operations around ten years ago for GBP12.3m (US$16.3m) in a bid to gain a stronger foothold in mainland Europe.

A spokesperson for Debenhams told just-style: "The company is reviewing its options on Magasin and will update as appropriate."

The retailer said this week it expects to miss full-year profit forecasts as it revealed a like-for-like sales drop of 1.7%, which it blamed on increased competitor discounting and weakness in key markets.

The company is currently in the midst of its 'Debenhams Redesigned' strategy, unveiled last year in a bid to drive growth but also find efficiencies through simplifying and focusing the business.

Revealed in April, the plan is aimed at making Debenhams more digitally-driven and more of a "destination" shop. It will work alongside Debenham's 'Fix the Basics' plan, which is already underway to switch around 2,000 staff to customer-facing roles, replenish stock faster, and de-clutter the store environment, amongst other things.

It also includes plans to review the closure of up to ten UK stores and exit some non-core international markets over the next five years.