Debenhams Group has reported continued sales growth as its marketplace strategy gains momentum, with the retailer saying trading remained positive through June and July.

The online retailer said gross merchandise value (GMV) continued to grow year on year after returning to growth in the first quarter, supported by improved sales margins and lower customer returns.

Chief Executive Dan Finley said the group’s marketplace model and broader product assortment had enabled it to respond quickly to changing consumer demand, with recent hot weather boosting sales across seasonal categories.

The strategy has seen Debenhams expand beyond its traditional fashion roots, growing its offer across home, beauty and lifestyle categories through third-party marketplace partners.

The group also reported progress within its Young Fashion division, with PrettyLittleThing returning to growth and profitability.

Debenhams said it expects net debt to fall significantly this year, driven by stronger trading and the sale of remaining non-core property assets. The retailer also reiterated its ambition to grow Debenhams into a multi-billion-pound GMV business capable of generating more than £100 million in EBITDA over the medium term.

Since rebranding from Boohoo Group to Debenhams Group in 2025, the business has focused on expanding its marketplace model while broadening its product offering beyond fashion into categories including homewares and electricals.

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