House of Fraser to launch smaller chains

Department store chain House of Fraser is planning to launch a national chain of small stores on the high street. The plan could prove a major blow to Debenhams. One of the growth strategies outlined when Debenhams' private equity owners Texas Pacific Group, CVC and Merrill Lynch Global refloated it last year was the potential to expand the high street spin-off, Desire by Debenhams.

Downsizing enables the retailer to open shops in catchments that would not support a full-blown department store. Debenhams has opened seven Desire stores, which sell women's clothing and accessories, and has another two in the pipeline. Sources close to HoF said the plan was at the 'drawing-board stage' but it was actively scouting small store locations.