June 20, 2014 // Franchising.com // Costa, the nation's favourite coffee shop, has announced that it will partner with Debenhams to trial six new concessions across the department store's UK estate. The first shop will open on June 25th, set within the retailer's Guildford store.
The Costa partnership is set to complement Debenhams' existing in-store restaurant and café offering, providing customers with a relaxing rest stop for a drink, bite to eat or a satisfying meal, whilst shopping. With hospitality a key part of Debenhams' strategy to offer a compelling customer proposition, the Costa brand adds even more choice and has been requested by shoppers during research.
The partnership provides a great strategic fit for the two UK brands, with both retailers possessing similar customer demographics, brand recognition and product quality that UK customers know and love.
Debenhams' continued investment in hospitality services marks the recognition of opportunities that successful brands like Costa can bring to department stores, attracting customers and revenue in the concession's own right, whilst adding footfall and increasing dwell time.
The department store will continue to invest in its in-house restaurant and café business, as demonstrated by the new £25 million refurbishment of its flagship store on Oxford Street. It now features four complementary and contrasting food services, with each designed to appeal to the varied mind-sets of the shopper, and to maximise revenue.
James Hamilton, UK Head of Acquisitions at Costa, comments: "It is important for us to partner with other leading British retailers in order to deliver the best experience for coffee lovers. We see this as a mutually beneficial partnership; bringing together the nation's favourite coffee shop brand with one of the UK's leading department stores, allowing both brands to strengthen customer experience and further drive sales."
John Baker, Director of Food Services at Debenhams, comments: "Costa is the perfect partner for us to complement our successful in-house restaurant and café proposition. Growing our food hospitality business is an important part of our strategy to improve the return on our UK stores through a wider choice of products and brands. Partnering with Costa will only enhance our appeal.
"Nearly all Debenhams stores are equipped with a restaurant, a café or both. Working with third parties offers a fantastic opportunity to create an additional offering and the strength of Costa's brand, coffee heritage and customer appeal is a good strategic fit for us."
Costa will launch in six Debenhams' stores: Guildford and Slough in June and Derby, Exeter, Haverfordwest and Woking in July.
Costa is the UK's favourite coffee shop brand, having been awarded "Best Branded Coffee Shop Chain in the UK and Ireland" by Allegra Strategies for four years running (2010, 2011, 2012 & November 2013).
Winner of "Best Branded Coffee Chain in Europe" Allegra Strategies 2011, 2012 and 2013.
With over 1,600 coffee shops in the UK and more than 1,000 overseas, Costa is the fastest growing coffee shop business in the UK and the second largest coffee shop operator in the world. Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa has become the UK's favourite coffee shop chain and has recently diversified into both the at-home and gourmet self-serve markets.
Costa employs over 11,000 people and is creating around 1,500 jobs this year and over 4,500 jobs in the next 3 years in the UK
Costa is committed to looking after coffee-growers. That's why we've established The Costa Foundation, a registered charity. The Costa Foundation's aims are to relieve poverty, advance education and the health and environment of coffee-growing communities around the world. So far, The Costa Foundation has funded the building of 42 schools and improved the social and economic welfare of coffee-growing communities.
Debenhams is a leading international, multi-channel brand with a proud British heritage which trades out of 243 stores across 28 countries. Debenhams gives its customers around the world a unique, differentiated and exclusive mix of own brands, international brands and concessions.
In the UK, Debenhams has a top three market position in womenswear and menswear and a top ten share in childrenswear. It holds the number two market position in premium health and beauty.
Debenhams has been investing in British design for 20 years through its exclusive Designers at Debenhams portfolio of brands. Current designers include Abigail Ahern, Ted Baker, Jeff Banks, Jasper Conran, FrostFrench, Patrick Grant, Henry Holland, Betty Jackson, Ben de Lisi, Todd Lynn, Julien Macdonald, Jenny Packham, Pearce Fionda, Stephen Jones, Preen, Janet Reger, John Rocha, Jonathan Saunders, Ashley Thomas, Eric Van Peterson and Matthew Williamson.
Costa PR Executive
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