UK retailer Debenhams sees sustained growth as marketplace shift pays off

July 14 (Reuters) - UK's Debenhams Group said on Tuesday that positive trading momentum continued through June and July, supported by improving sales margins and lower customer returns, as the online retailer's turnaround strategy gained traction.

Here are some details:

• The British retailer, which returned to gross merchandise value (GMV) growth in the first quarter, said GMV has continued to grow year-on-year as it shifts to a marketplace model to counter weak consumer demand and competition from low-cost fast-fashion rivals.

•  "Our platform model and diversified product assortment enables us to pivot quickly and capitalise on consumer demand. This has been especially so on Debenhams during the recent hot weather," CEO Dan Finley said in a statement.

• The retailer, which owns brands including Karen Millen and Boohoo, said its Young Fashion division was turning around with PLT returning to growth and profitability.

• The company expects net debt to be "materially lower" this year through improved trading and sales of remaining non-core property assets and also sees potential for Debenhams to become a "multi-billion-pound GMV business with £100 million-plus EBITDA" in the medium term.

• Since Boohoo rebranded as Debenhams in 2025, the iconic brand's turnaround strategy and efforts to offset supply-chain pressures have prompted two profit forecast upgrades in recent months.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips)