Attempts by Debenhams to drive better returns from its stores will be in the spotlight when the chain reports lower annual profits on Thursday.

The group, which has 158 outlets in the UK, is battling to improve its fortunes after a disastrous Christmas performance led to a sharp fall in half-year profits.

Admitting recently that 10 per cent of its UK space was under-performing, the chain has invited Sports Direct and Costa into its stores as part of a trial that could lead to the arrival of a number of other leading brands.

Investec Securities is forecasting a 21 per cent fall in Debenhams' full-year profits to £110.2 million.

At the time of the poor half-year results chief executive Michael Sharp said he wanted to make the business less reliant on discounting to pull in trade.

The company is also working to improve its delivery options in time for Christmas, with next-day click and collect and a 10pm cut-off for next-day delivery.

Sports Direct opened two sports concessions in Debenhams stores in Harrow and Southsea during August and will potentially open more sites before the end of the calendar year.

The Sports Direct move came as the leisure chain, controlled by Mike Ashley, took out a series of complex financial arrangements which has taken its interest in Debenhams to 11 per cent.

Online retailer ASOS will see annual profits fall sharply on Tuesday after a year in which it suffered two profit warnings and a warehouse fire.

The fashion website will post profits of £45.1m, almost 18 per cent down on a year ago, as it invested £68m on assets such as a new hub in Berlin, expanding a facility in Ohio and a new warehouse in Shanghai.

The business, which attracts 71.2 million visits per month to its eight local language websites, was hit by a fire at its main warehouse in Barnsley in June affecting 20 per cent of stock in the five-storey building.

It also issued two profits warnings this year after it said it needed to make a further significant investment in IT and adjust the pricing on its websites in countries such as the US, France, Germany and Spain.

The business, which has been impacted by the strong pound, said as a result of this investment its profits next year will be similar to this year. As a result Nomura cut its forecasts for 2014/15 to £48m from £60.6m.

Home Retail Group's digital turnaround strategy for Argos should show further signs of paying off when it reveals higher half-year profits on Wednesday.

The group, which also owns DIY chain Homebase, is expected to post a pre-tax profit up 26 per cent to £34.6m on last year, as it reduces its dependence on laminated catalogues in favour of iPads at Argos's 747 shops.