Recently renamed as Boohoo, the Debenhams Group plans to expand into the US market by striking deals to launching its British fashion brands on the online marketplaces of major American department stores including Macy’s, Bloomingdale’s, and Nordstrom.
The tie-up allows the Debenhams Group to list popular UK labels - including Coast, Warehouse, Oasis, Nasty Gal, and Karen Millen - on these US retailers' digital platforms. The Debenhams Group states, the three online marketplaces collectively attract over 350 million shoppers monthly, giving the British brands an unprecedented level of exposure.
Dan Finley, CEO, Debenhams Group, champions the move as a critical step in their global strategy. Through these partnerships, the Group’s labels will now be in front of millions of potential shoppers across the US giving British fashion an unprecedented platform in one of the world’s largest retail markets, he says.
The company has already reported encouraging early signs, noting immediate customer engagement across its brand portfolio on Bloomingdale’s and Nordstrom. Macy’s reportedly launched a dedicated marketing campaign for the introduction of Nasty Gal on its site.
The deals were facilitated by Refined Networks, an organization specializing in helping fashion and lifestyle brands scale internationally through online marketplaces.
This aggressive international expansion comes at a difficult time for the Debenhams Group, which is undergoing a major turnaround led by Finley amid mounting financial challenges.
During the year ending February 28, the company widened its pre-tax loss of £263.3 million (up from a £146.4 million loss the previous year), with revenues declining by 17 per cent to £1.22 billion.
To address these issues, the business has secured around £50 million in annual savings and cut its staff headcount by 30 per cent. In August, the company also announced plans to sell its popular PrettyLittleThing brand as part of the operational overhaul.
The Debenhams Group is also engaged in an increasingly public and bitter dispute with the Mike Ashley-owned shareholder Frasers Group, which holds a near-29 per ecnt stake. Frasers recently voted against a number of resolutions at the Debenhams annual general meeting, signaling its dissatisfaction with the company’s performance, which has seen its share value plummet by more than half over the past year.
