Debenhams enjoys record December sales Department store group Debenhams hailed its best ever December performance today after ramping up pre-Christmas discounting to attract cost-conscious shoppers. The group, which has 155 UK stores and 73 overseas outlets, cut prices by up to 50 per cent in one-day promotions on some products in what chief executive Michael Sharp said was the most competitive Christmas in his 37-year career in retail. He said shoppers were more "canny" and left shopping until much later this year in the hope of picking up bargains ahead of Christmas as well as during the traditional sale period. Sharp said consumer confidence would remain subdued over the year ahead, adding: "Whilst consumers have become acclimatised to the new economic reality, we don't anticipate a significant change in consumer confidence in the remainder of the year." Debenhams saw sales in the five weeks to 5 January rise 5 per cent on a like-for-like basis after a record December, helping comparable sales in the first 18 weeks of its financial year lift 2.9 per cent. But the group sacrificed margins for sales and said the move to discount earlier in the season was expected to hit profit margins for the year to September. Kate Calvert, retail analyst at Seymour Pierce, said she believed today's trading update would not be enough to support the recent rally in Debenhams" shares, which surged 95 per cent last year, and said profits in the UK would remain under pressure because the group has limited space for growth over the next 18 months. She added: "Online sales, which are included in like-for-like sales, were up a very strong 39 per cent and now account for 12.6 per cent of sales. We maintain our 2013 pre-tax profit forecast of £170 million, in line with consensus.