Disruption in the UK retail market continues at the value end of the market, with many fast fashion retailers in Europe and the US citing increasing and unbearable pressure from Shein and Temu for the loss of their Gen-Z consumers. With the likes of Forever 21 closing its doors and UK’s New Look also rationalizing its store footprint, online fast fashion retailer, Boohoo, is pursuing an alternative strategy. It announced that it is to rename from Boohoo to Debenhams, a UK heritage brand it acquired from financial distress.
What a brand pivot this is.
Debenhams was a department store retailer dating back to 1770s that has no doubt retained customer loyalty and brand awareness amongst the older generation of shoppers who frequented the UK’s high street. Interestingly, The State of Fashion 2025, an industry report issued by The Business of Fashion and McKinsey, reported that shoppers aged 50 and older are expected to drive 48% of incremental growth in global retail spending, and while half of Gen-Z consumers prefer to explore and shop new brands, only a third of the so-called ‘Silver Shoppers’ will do the same.
This is a trend that Boohoo clearly intends to take advantage of, with the older demographic typically being a more loyal customer base who seek consistency in the brands they trust. The bold move to rebrand as Debenhams will also reposition the business in the market; a decision that was likely supported by customer data and analytics, which can quickly identify any shifts in customer demographic through customer segmentation. The ability of today’s brands to realign not just brand strategies, but also business strategies on the basis of customer data and analytics can be a key factor in preserving brand value.
Part of our IP diligence in arriving at IP value is to consider how data underpins key drivers of brand value. Those retailers that have invested in their customer connections and database, whether via multi and omni-channels transactions, click and collect, instore sign-ups, or digital receipts, are gathering transactional data that tells them who is buying, how much their spending, how often they buy and from which channels. However, our review does not stop at the customer loyalty metrics, as we are also interested in how the customer data is used in business decision making, for example how it informs product development and design, pricing decisions, marketing strategy, and marketing budget allocation between performance marketing and brand marketing.
In our experience the ability of retailers to stay ‘nimble’ in both their brand and business strategies, provides more assurance that forecast financials can be relied on for IP valuation and gives confidence that the brand can stay relevant in changing market conditions, preserving brand value.
Preserving brand value is a key concern for lenders that have taken security over the IP. The Boohoo rebrand is evidence that retail brand value can be preserved even in a downside scenario. A heritage brand can be missing from the high street for years and can be successfully reintroduced and immediately reconnect with its old customer base and transition / connect with a new customer base to provide access to future cash flows, at a lower customer acquisition cost.
We’ve seen similar revivals with brands like Laura Ashley and Topshop. These cases reinforce that multiple monetization strategies exist for retail brands—even in distress scenarios. In our downside valuations for lenders, we evaluate brand loyalty, positioning, and power—critical indicators of IP value preservation. These insights help lenders assess both their risk and their exposure.
