Debenhams introduces AI to drive agility across pricing and promotions
Debenhams Group, formerly known as Boohoo Group, has implemented Artificial Intelligence (AI) at scale to optimise pricing and promotions. The early results are promising, with the online retail giant reporting improvements in sales, profit margins, and cash flow.
Debenhams Group, which was historically reliant on time-intensive, manual pricing processes, is now automating decision-making across thousands of SKUs in real-time. The move will see it roll out AI across its entire brand portfolio including PLT, Boohoo, Debenhams, Dorothy Perkins and Karen Millen.
This shift promises a more agile response to demand patterns, seasonal trends and inventory levels, improving pricing accuracy and promotional timing at scale.
Dan Finley, CEO of Debenhams Group, said: "With this technology, we’ve fundamentally changed how we approach pricing.
"AI gives us the ability to make smarter decisions at speed, ensuring our promotions deliver the best value for our growing customer base and driving both business performance as well as the customer experience."
The deployment has also freed up merchandising teams from spreadsheet-heavy workflows, allowing the business to focus on strategic activities.
Boohoo Group rebranded as Debenhams Group in March, marking a major strategic shift and celebrating the continued turnaround of the department store brand it acquired out of administration three years ago.
It comes as Debenhams Group is in talks to secure a refinancing package worth up to £175 million to support its ongoing transformation.
The Manchester-based group has entered discussions to raise £50 million through the high-yield debt market - an avenue known for higher interest rates that could climb into the mid-teens. The remaining £125 million is expected to come from refinancing a two-year loan originally secured in October 2023. That facility drew criticism from major shareholder and rival Mike Ashley at the time, who labelled it "the worst refinancing deal that a public company has done in living memory".
