Debenhams added optimism to the high street retailers by declaring sales growth for the first time in last 18 months. It joined group of retailers which have begun to defy recession. The department group’s shares also soared after it announced pre-tax profits ahead of City forecasts.

Debenhams’ deputy chief executive, Michael Sharp, stated that consumers have started spending once again on account of low mortgage costs and falling utility bills. He claimed that people were having more disposable income now than they had last year when interest rates and energy bills were at their peak.

Debenhams has been performing well as its sales in 154 stores across the UK grew by 6.1%, with 1.9% increase in like-for-like sales over 7 weeks to April 18. The sales were largely boosted by its Designer range and own-bought ranges including Maine New England.

During 26 weeks at the end of February, Debenhams’ headline pre-tax profits rose by 10.7% to £104.2 million, nearly £10 million above the market forecasts.

The star performers of the retailer were Jasper Conran and John Rocha, where overall sales rose by 11%. Michael Sharp termed this performance as pleasing particularly because trading conditions up to Christmas were most volatile ever seen before. But he is cautious about remaining period of current financial year and did not feel that consumer downturn had reached its bottom.

Debenhams will be opening nine stores during next two years, leading to creation of 1,800 new jobs.