The retailer has pledged to leave “no stone unturned” as its turnaround ramps up, including the sale of fast fashion label PrettyLittleThing.
Debenhams Group is doubling down on its ambitions to become a digitally-led business, as the company mulls the sale of fast fashion brand PrettyLittleThing.
Promising “no stone will be left unturned”, CEO Dan Finley CEO Dan Finley assured investors yesterday (26 August) the team is working decisively to “address the challenges” the company faces, after what he described as a “long period of sustained and unacceptable underperformance”.
Group gross merchandise value (GMV) from continuing operations dipped 2% to £1.6bn for the year to 28 February. The GMV among the firm’s youth brands, such as Boohoo and PrettyLittleThing, fell 19% to £795.6m, while Karen Millen experienced a 3% decline to £157.1m
Debenhams Group is doubling down on its ambitions to become a digitally-led business, as the company mulls the sale of fast fashion brand PrettyLittleThing.
Promising “no stone will be left unturned”, CEO Dan Finley assured investors yesterday (26 August) the team is working decisively to “address the challenges” the company faces, after what he described as a “long period of sustained and unacceptable underperformance”.
Group gross merchandise value (GMV) from continuing operations dipped 2% to £1.6bn for the year to 28 February. The GMV among the firm’s youth brands, such as Boohoo and PrettyLittleThing, fell 19% to £795.6m, while Karen Millen experienced a 3% decline to £157.1m
“Work is progressing to reposition and right size the youth brands, with a laser focus on profitability and cash generation under new management,” said Finley.
The key highlight in the results was Debenhams, which saw GMV surge 34% to £654m over the year period.
In March, the business rebranded from the Boohoo Group to the Debenhams Group to tap into the “huge brand awareness and significant consumer trust” tied up in the Debenhams name. Speaking at the time, the company recognised the turnaround would “take time” and there was “substantial change ahead”.
The marketing narrative is now firmly about repositioning Debenhams as a marketplace-led business, combining legacy brand equity with tech-driven retail infrastructure. Operating as a digital department store bringing together more than 15,000 partner brands, Debenhams’ switch to multi-category lifestyle platform is seen as a blueprint for the other group brands.
Analysts sceptical of Boohoo’s Debenhams Group rebrand
The company outlined the “future potential” it sees in pivoting its youth-focused businesses towards fashion-led marketplaces. Over the past year, for example, the Debenhams Group launched Boohoo’s marketplace with over 1,000 brands.
According to the group, nearly 30% of GMV is driven by the marketplace model, up from 15% a year ago.
As the shift to a marketplace model ramps up, the fashion landscape is changing for youth brands like PrettyLittleThing. Not only is there the rise of ultra-fast challengers like China’s Shein to contend with, but Asos-owned Topshop is returning to the high street via an exclusive tie-up with premium department story Liberty, launching tomorrow (28 August).
PrettyLittleThing rebranded in March, ditching its characteristic bubblegum pink for a muted brown shade, as the business sought to enter an “elevated new era”. Since then the brand has been reclassified as a discontinued operation, with a sale process formally underway.
Aside from any potential sales, the group’s “multi-year turnaround” includes the launch of several new branded services. These include Debenhams Pay+, a credit offering intended to remove purchase friction and deepen customer loyalty. The business is also pushing its Delivered by Debenhams service, which enables brands to outsource their logistics, and retail media product Debenhams Ads.
From a product perspective, the retailer cut inventory levels by over 50% during the year, with 90% of stock now less than six months old. The turnaround project has also resulted in a 30% reduced headcount.
Debenhams Group claims to have made “significant progress” under its new leadership, but acknowledges there “remains much to do and many opportunities to realise”.
