Costa to trial its coffee shops within leading department retailer Debenhams

Costa, the nation’s favourite coffee shop, has today 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.