Debenhams boss Michael Sharp to step down in 2016

Debenhams' chief executive Michael Sharp is to step down in 2016 after five years in the role, the company has said.

Media reports last month said several of Debenhams' biggest investors were unhappy with the retailer's performance and had pushed for a board shake-up.

But the firm said Mr Sharp had always intended to serve a five year term.

Mr Sharp said: "I hope being transparent... will stop recent speculation becoming a distraction."

"I accepted the job of chief executive with the intention of spending five years in the role and although it will be difficult to leave a fabulous company like Debenhams, now is the right time for the board to begin the process of identifying my successor," he added.

Debenhams shares rose about 4% in early trading on Thursday.

Mr Sharp has worked for Debenhams or its predecessor, Burton Group, for 30 years, and became chief executive in 2011.

There had been mounting rumours over his tenure, with Mr Sharp under increasing pressure in recent years to turn the firm's fortunes around.

Mr Sharp has cut back on promotions, strengthened online ordering and delivery options, and added concessions in under-used store space to increase shopper numbers. He has also built the firm's international presence.

But the firm has seen little sales and profit growth in recent years, and its shares, though up a third over the last year at around 81 pence, are well down on their November 2012 peak of 124 pence.

Debenhams said Mr Sharp will remain in the post during the Christmas trading period.

Separately, the company reported full year profit before tax rose 7.3% to £113.5m.

Like for like sales rose 2.1% in the year, and it sold more own brand clothes at full price.