British department store chain Debenhams said it was on track to deliver full year results in line with expectations despite seeing no underlying sales growth in its third quarter.

Britain’s No. 2 department stores chain behind John Lewis said yesterday that sales at stores open over a year were flat over the 15 weeks to June 13, versus analysts’ third quarter forecasts of down two per cent to up 0.5 per cent.

The performance followed first half growth of 1.3 per cent, which was enhanced by one per cent from the shift of a key sale period from the third to the second quarter.

“Our customers tell us that, while they recognise the improving economic background, they remain cautious in their spending,” said chief executive Michael Sharp.

The firm is cutting back promotions and strenghtening online ordering

Debenhams maintained gross margin guidance for its 2014-2015 year – growth at the low end of a 10 basis points to 40 basis points range – and said it was on track to achieve pretax profit expectations of £111 million versus £110 million made in the previous year.

The firm is cutting back promotions, strengthening online ordering and delivery options, and adding concessions in under-used store space to secure higher returns, improve choice and increase shopper numbers.

Debenhams said it had agreed concession trials with new partners including Patisserie Valerie, Chi Kitchen and BHS lighting, to add to deals already done with Sports Direct, Costa Coffee, Monsoon and Jack & Jones.

Debenhams, which currently trades from over 240 stores across 27 countries, also said it was on track to open five more stores in the UK this autumn, in Bradford, Wandsworth, Rugby, Beverley and Newport.