Debenhams launches British fashion labels in US through department stores

The owner of Boohoo and Debenhams has set its sights on the US market with a tie-up to sell its British fashion brands online with major American department stores Macy’s, Bloomingdale’s and Nordstrom.

Debenhams Group, which was recently renamed from Boohoo, has struck a deal to sell UK labels Coast, Warehouse, Oasis, Nasty Gal and Karen Millen through the US retailers’ online marketplaces, which it said together attracts more than 350 million shoppers each month.

Dan Finley, chief executive of Debenhams Group, said: “Launching into the US is about bringing our much-loved British fashion labels to new audiences overseas, starting with some of the most iconic department store names in the market.

“Through these partnerships, our 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.”

The firm said it was already seeing “encouraging” early signs after Macy’s launched a dedicated marketing campaign in August ahead of the launch of Nasty Gal on its site, while it added that Bloomingdale’s and Nordstrom also saw “immediate customer engagement across the group’s portfolio”.

“Each now offers exciting products from some of the most iconic British brands with a point of difference within the market,” according to Debenhams.

“The appetite we’re already seeing for our labels underlines the strength of British fashion internationally, and we’re excited to build on that momentum with our US partners,” Mr Finley added.

The deals were arranged through Refined Networks, which helps fashion and lifestyle brands expand internationally through online marketplaces.

It comes amid a difficult time for Debenhams Group, with Mr Finley – who was appointed last year – leading a major turnaround after mounting losses and flagging sales.

In August, the business said it was considering the sale of its PrettyLittleThing brand as part of the overhaul, having already secured around £50 million in annual savings and cut its staff headcount by 30% to help transform operations.

Figures showed a pre-tax loss of £263.3 million for the year to February 28, widened from a £146.4 million loss the previous year, while revenues dropped by 17% to £1.22 billion.

The firm is also in the middle of an increasingly bitter row with Mike Ashley’s Frasers Group, which owns a near-29% stake in Debenhams.

Frasers voted against a raft of resolutions at Debenhams’ annual general meeting earlier this month in its latest signal over its frustrations regarding the performance of the business, which has seen its share value drop by more than half over the past year.