Department store Debenhams has announced that the first of its Australian stores will open in Melbourne.

It has been reported that the British retailer has signed the lease on a 4,000 square metre store in the newly redeveloped St Collins Lane in the downtown area of the city, although an opening date has not been confirmed.

Debenhams recently reported a 1.6% fall in like-for-like sales for the 15 weeks to June 11th and warned that its profits margins were likely to be lower than predicted amidst “uncertain trading conditions”.

Earlier this year, the company’s e-commerce director Ross Clemmow told the Sydney Morning Herald that the online Australian market is the company’s second largest after the UK, prompting Debenhams to launch a dedicated Australian online store ahead of its physical roll out.