#43 Debenhams Group CEO: UK Government is Handing China the Upper Hand

Debenhams was once one of the biggest names on the British high street. Founded in 1778, it collapsed into administration before being rescued and rebuilt as a digital-only marketplace. Now, under chief executive Dan Finley, Debenhams Group is back to growth in Q1, after reporting a £350 million loss in the year to February 2025. Finley argues the business is now one of the biggest turnarounds in recent UK retail history, with the Debenhams brand generating £654 million in annual revenue and a marketplace model built around 25,000 brands across fashion, home and beauty.

But his biggest fight is not just with the legacy of the high street. It is with Shein, Temu and the tax rules he says give overseas platforms a structural advantage over British retailers. The de minimis exemption allows low-value parcels to enter the UK without import duties. Finley says that means UK businesses, which pay British taxes, employ British workers and comply with domestic safety regulation, are competing on an uneven playing field. The government has committed to closing the loophole by 2029, but Finley wants action within 12 months, pointing to the United States, which moved in six months, and the EU, which begins rolling out changes from July.

There is also pressure closer to home. Frasers Group, controlled by Mike Ashley, owns close to 30 per cent of Debenhams Group and recently blocked the formal company name change from Boohoo to Debenhams Group. Finley says the business already operates as Debenhams Group in practice, trades under the stock market ticker “DEBS”, and remains focused on delivering value for all shareholders. His own incentive plan is tied to a dramatic target: taking the share price from around 23p to £3, an 18-fold increase sustained over two years, creating more than £4 billion in shareholder value. Finley calls it a big challenge, but says he is determined to get there.

The next stage of the turnaround is built around AI and agentic commerce. Debenhams has struck a partnership with Meta and is preparing for a future where consumers shop through platforms such as ChatGPT and Perplexity. Internally, AI is being used to scale marketing content from a single photo shoot into millions of personalised assets, while a partnership with Multiverse will deliver more than 100 AI apprenticeships for staff. Finley describes AI as a “snakes and ladders moment” for both companies and individuals.

What is not coming back is the department store. Finley rules out a return to physical retail and says Debenhams’ future is entirely digital. His ambition is for the brand to become “to retail what Spotify is to music”: a curated marketplace where shoppers can discover thousands of brands in one place.

Presenter: Will Bain

Producer: Olie D'Albertanson

Editor: Henry Jones