Debenhams CEO Urges Labour to Reduce Business Costs and Address Import Loophole

The chief executive of Debenhams, Dan Finley, has urged the Labour party to decrease business costs and close a customs duty loophole that currently benefits overseas rivals, such as the fast-fashion giant Shein. Finley's appeal comes as part of a pre-Budget plea from retail leaders seeking government support to foster business growth and protect consumers from increased financial pressure.

Finley specifically requested that the government accelerate the process of eliminating a rule that allows companies like Shein and Temu to import parcels valued up to £135 into the UK without paying import duties. Retailers argue that this policy creates an uneven playing field, enabling foreign companies to undercut British businesses that face higher employment and business rates. While the government has committed to scrapping this rule by October 2028, retailers are pressing for a faster timeline, citing quicker action taken by the European Union and the United States.

"I'd love an acceleration in the low value import threshold reduction and getting that done way before 2029," Finley stated. "The US did it in six months. The E.U. did it in 12 months. Why can't we do it in 18 months?"

Finley is spearheading efforts to revitalize the Debenhams brand, known for its fashion campaign featuring actress Kim Cattrall, as a model for transforming the wider group's performance. The group also owns online retailers Boohoo and PrettyLittleThing. The company recently reported positive financial signals, with shares rising 3% following indications of a recovery and a return to profit before tax for the first time in five years. Despite concerns about consumer confidence, Finley expressed optimism for the upcoming holiday season, commonly referred to as the "golden quarter," anticipating strong sales, particularly for party wear and the enduring popularity of the "little black dress."

Debenhams is shifting towards a marketplace model, where third-party brands sell through its platforms for a fee, and is focusing on reducing high return rates for its brands. The company has also divested assets, including its Sheffield warehouse sold to Primark for £90 million and its youth fashion brand Nasty Gal US sold to WSG Brands for £12 million. For the six months ending August 31, the group recorded profits of £28.3 million, a significant improvement from a loss of £17.9 million in the same period the previous year. The fast-fashion firm Boohoo acquired Debenhams out of administration in 2021, subsequently closing its physical stores and transitioning the brand to an online-only presence.