Debenhams Group offloads Sheffield distribution centre

Debenhams Group has announced the offloading of its Sheffield distribution centre as part of continued turnaround efforts specifically focused on pivoting the retail giant to a capital-lite, stock-lite model.

The automation at the site has been sold and the location’s lease has been reassigned to Primark Stores Limited for consideration of 90 million pounds in cash. Around 13.5 million pounds will be received on vacant possession early next year, with the remainder already paid upon completion.

As a result of the deal, Debenhams now anticipates net debt to be negligible by the end of the fiscal year in February 2027, while its depreciation is set to reduce by 12 million pounds per annum. The company is striving for its marketplace model to reflect over 50 percent of GMV.

Debenhams further said it was entering into a deal with 3PL provider to continue to fulfil its stocked product while it scales its Delivered by Debenhams fulfillment proposition.

In a statement, Dan Finley, group chief executive officer, said the turnaround “continues at pace, and this transaction helps accelerate our progress”. He added that GMV growth has accelerated in the second quarter of the year.