Boohoo rebrand and shift to marketplace model

Commenting on the news that Boohoo is rebranding to Debenhams Group and shifting to a marketplace model, Chris Clowes, Executive Director at global supply chain and logistics consultancy, SCALA, said:

“By rolling out Debenhams’ tried, tested, and successful marketplace model, Boohoo could also reap the rewards of lower costs and reduced risk. We’ve seen this approach work well elsewhere, such as when Marks and Spencer began selling brands like Nobody’s Child and Fat Face and enjoyed substantial growth. We also saw Tesco and B&Q marketplaces boost sales and cut costs, as the change in approach repositioned them as convenient ‘one-stop shops’ for the customer while removing the costs associated with owning stock.”

“From a logistics perspective, taking Debenhams’ successful marketplace model and applying it to Boohoo could well cut capital and logistics costs (such as warehousing, transport, and returns), as the retailer doesn’t own the stock but still takes a percentage of the selling price. With Debenhams already using Mirakl, a platform which enables businesses to create and manage online marketplaces, expanding this model across Boohoo’s brands could be a logical next step to improve efficiency and stay competitive.”The post Boohoo rebrand and shift to marketplace model first appeared on Warehouse & Logistics News.