Can Debenhams rebrand save Boohoo Group?

Debenhams is back. Well, at least that’s what Boohoo Group CEO Dan Finley hailed this morning after unveiling its bold rebranding.

After acquiring the distressed department store in 2022, Boohoo Group has pivoted the once-beloved high street favourite into a new direction, reintroducing it as what it claims to be Britain’s leading online department store with a marketplace model.

With the marketplace model now driving Debenhams’ growth, Boohoo hopes this fresh approach can turn around not just Debenhams, but its other brands, including the host of struggling fast fashion brands which once were the group’s driving force — Boohoo, PrettyLittleThing, and Boohoo Man.

It’s an ambitious move, but can a marketplace model designed for variety and convenience truly revive flagging fast-fashion brands in a market flooded with competition?

How Boohoo Group is evolving and what’s next?

Since acquiring the Debenhams brand in 2022, following the long-suffering department store chain’s administration, Boohoo executed a major strategic shift.

The department store’s former bricks-and-mortar focused model was replaced with an online marketplace approach. Instead of holding inventory, Boohoo now partners with external brands that manage their own stock and logistics.

As Finley, who stepped into the CEO role four months ago, explained, “We are principally a marketplace model… the responsibility for buying, storing, picking, and packing the products rests with our partner.”

This “stock-lite” strategy reduces both risk and capital investment—a significant advantage in the fast-evolving e-commerce landscape. The marketplace model has driven impressive growth, with GMV reaching £645m in FY25, up 43% year-on-year. Finley also pointed out that the new model achieved a 27% EBITDA margin, a strong performance in today’s challenging retail climate.

Peel Hunt analyst John Stevenson praised the success of the Debenhams platform, highlighting how the transition from a traditional retail model has positioned it for continued growth. “The shift to a marketplace model has been highly effective,” he says.

“The momentum is undeniable, and it’s clear that as more brands join the platform, it will keep gaining traction.”

According to Finley, new initiatives, such as retail media and Debenhams Pay+ (a financial services platform), are also in the works to boost customer engagement and drive further growth. This vision aligns with Boohoo’s goal to offer a more diverse array of products and services while maintaining a capital-light model.

Looking ahead, Finley shared, “We see Debenhams becoming a multi-billion-pound GMV business in the medium term.” The overarching plan is to build an ecosystem of brands, partners, and technology that can cater to the changing demands of today’s consumer.

Buoyed by this momentum across its Debenhams division, Boohoo is now leveraging proprietary technology to scale this model, which will be rolled out across the group to support the broader marketplace shift.

But while Stevenson notes that the success of Debenhams’ transformation could provides a wider blueprint for growth across the group, it also highlights the unique challenges Boohoo’s youth brands face.

So, will what worked for Debenhams also revive the fortunes of the group’s struggling fast-fashion division?

Marketplace vs fast fashion – what it means for Boohoo’s legacy brands

The success of Debenhams’ marketplace model sharply contrasts with the ongoing struggles faced by Boohoo’s core fast-fashion brands.

Boohoo, PrettyLittleThing, and Boohoo Man have all seen significant declines in performance as the market evolves, and younger consumers become increasingly discerning about where they shop.

As John Stevenson of Peel Hunt notes, Boohoo’s youth fashion brands continue to battle against stiff competition and shifting consumer preferences. “The market has changed, and the demand for fast fashion has softened,” he explains.

“Brands like Boohoo and PrettyLittleThing were once at the forefront, but now they’re struggling to capture attention in a world where trends are shifting rapidly, and price sensitivity is at an all-time high.”

The challenges facing Boohoo’s brands are compounded by inflationary pressures and tighter budgets, which have led to reduced spending and a heavy reliance on discounting—ultimately eroding their margins. With competitors like Shein offering lower-priced options and more diversified products, Boohoo and its brands are forced to evolve to stay relevant.

Stevenson pointed out that the decline in these brands’ performance isn’t just about external competition; it’s also a reflection of the changing dynamics within the fast-fashion market itself.

“The young fashion market has really struggled,” he adds. “If you look at the performance over the last six months, young fashion is down 25%. That’s not just the US exit—it’s also a result of these brands being increasingly challenged in their own markets.”

In FY25, these youth fashion brands saw a decline in GMV and profits, particularly in the latter half of the year. Their struggles to keep pace with the shifting market are starkly different from the growth driven by Debenhams’ successful marketplace shift.

PrettyLittleThing, for example, launched its rebrand earlier this month with a shift away from its trademark bubblegum pink and unicorn motifs toward a more “quiet luxury” aesthetic.

However, GlobalData’s head of apparel Chloe Collins notes reaction to this branding shift “has been mostly negative, with the brand failing to justify its new higher price points with either improved quality or better environmental credentials and alienating its youngest followers who do still want trend-led styles, who now have even more reason to turn to Shein instead.”

For these brands to regain their relevance and long-term growth potential, they may need a similar transformation, including a shift in both business model and brand identity. Whether it requires a full rebranding or a complete strategic overhaul remains uncertain, but it’s clear that the current model is insufficient for thriving in today’s fast-evolving fashion market.

Will it work?

Debenhams’ transition to a marketplace model has proven successful, and Boohoo is keen to replicate this across its portfolio. But can this model succeed across the entire business, especially for Boohoo’s youth fashion brands?

Collins is unconvinced, and says a broader move to a marketplace model is “unlikely to work, given the waning desirability of [Boohoo’s fashion brands] and Shein’s marketplace ambitions.”

If Boohoo fails to replicate Debenhams’ marketplace success with its youth brands, it risks continued decline in growth and relevance. For these brands to adapt, Boohoo will need to implement structural changes—not only in operations but in how they’re marketed and perceived.

Stevenson observes, “The shift to a marketplace model won’t automatically resolve the challenges Boohoo’s brands face. They’re still grappling with significant competition and changing consumer behaviours.”

Marketplace models succeed when brands offer flexibility and a wider variety of products. In fast fashion, everything revolves around speed and instant gratification. To succeed, Boohoo’s youth brands must balance quick turnover with offering greater diversity and sustainability—without losing their core appeal. Therefore, rebrand aside, the long term success of the newly-unveiled Debenhams Group will depend not just on technology and logistics, but on how quickly its suite of fashion brands can evolve—both in business model and brand identity.

“While the marketplace model has worked for Debenhams, Boohoo’s youth brands are still facing the tough realities of a fast-fashion market that is becoming increasingly price-sensitive and competitive. They’ll need to evolve, but this is no small task.”

A marketplace model could provide a path forward, but Boohoo’s youth brands will need more than just a structural shift. They will have to transform how they engage with customers, manage their supply chains, and position themselves in a rapidly changing market.

If executed thoughtfully, these brands have the potential to evolve. However, it is clear that a rebrand in and of itself is not the silver bullet to reviving the online fashion group’s fortunes.