Department store chain Debenhams plans to open an outlet at Fort Kinnaird on the outskirts of Edinburgh as part of a 17-store expansion despite management expectations that market conditions will continue to be tough.
Debenhams, the UK's second largest department store chain after John Lewis, reported a 4.2% rise in pre-tax profit to £158.3 million for the year to September 1 after a recent pick-up in sales.
Ranges from fashion designers including Henry Holland and Julien MacDonald helped the group extend its share of the competitive womenswear market, with group-wide like-for-like sales up 1.6% excluding VAT over the year.
A number of other clothing retailers saw a fall-off in sales, particularly at the end of the summer, as shoppers' disposable incomes were hit by muted wage growth and rising prices, particularly for fuel.
Chief executive Michael Sharp said: "We have made good progress in 2012, achieving higher sales and earnings growth despite a very difficult market.
"Looking forward, we believe that customers are acclimatised to the new economic reality.
"While we don't anticipate a significant change in the economic environment in 2013, we expect to make further progress during the year."
Debenhams has 15 stores in Scotland after opening an outlet in Dumfries earlier this year.
It already had stores on Edinburgh's Princes Street and in Leith.
The UK-wide expansion will take place over the next five years and is expected to create 1700 jobs and add more than £150m to sales.
It comes on top of a revamp plan for its current 155-strong estate which has seen 18 shops modernised over the past year. It aims to have improved 30 by Christmas.
Debenhams opened seven franchise stores in locations including Russia and Pakistan this year, taking its overseas estate to 70.
It plans to open 20 more international stores over the next four years in locations including Bulgaria, Estonia, Egypt and Turkey.
The number of countries the retailer delivers online orders to outside the UK will increase by another 30 countries to 96.
Online sales growth has been particularly strong at Debenhams this year, rising 39.8% to £250.6m for the group as a whole.
Freddie George, analyst at Seymour Pierce, said: "Management has done a good job of steering the business through the prolonged downturn."
Debenhams' shares rose 10p, or 9.2%, to 119p
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