What: Debenhams partners with Retail Social to implement virtual fitting room technology, expanding from beauty to fashion categories as part of its successful digital transformation strategy.

Why it is important: This development highlights the evolution of online marketplaces, where virtual try-on capabilities are becoming essential tools for customer engagement and conversion.

Debenhams has announced a partnership with virtual fitting room platform Retail Social, initially focusing on beauty products before extending to fashion and clothing brands. CEO Daniel Finley emphasised the platform's ability to provide differentiated and enhanced customer experiences through personalised product interaction. The implementation aims to help customers make more informed purchasing decisions through moving, personalised human avatars with social influence capabilities. This digital innovation comes as part of Debenhams' broader success story since its 2021 acquisition and repositioning as Britain's online department store. The company's marketplace-led business model, characterised by stock-lite and capital-lite operations, has driven significant growth, with a 65% year-on-year revenue increase and a pre-tax profit of £4.5 million in December 2024, up from a £723,000 loss in the previous period. EBITDA doubled to £10.4 million, validating the effectiveness of the marketplace strategy.

IADS Notes: Debenhams' virtual fitting room initiative represents another milestone in its successful digital transformation. According to Drapers in March 2025 , the company's marketplace model has proven so successful that Boohoo Group rebranded to Debenhams Group, acknowledging the platform's £205 million in net sales and strong EBITDA margins. Fashion Network's December 2024 coverage  highlighted this success with a 65% increase in gross merchandise value to £359.687 million and doubled EBITDA, demonstrating the effectiveness of its digital-first strategy. Drapers' March 2025 analysis  of the DebenhamsPay+ launch showed how the company continues to innovate in digital services, enhancing its marketplace offering with flexible payment options. Fashion Network's October 2024 report  on the Runway London 1.8.1.8 collection demonstrated how Debenhams successfully balances heritage with digital innovation. The partnership with Retail Social for virtual fitting room technology further reinforces Debenhams' position as a leader in digital retail transformation, combining technological innovation with practical solutions to enhance customer experience.

Debenhams deploys virtual try on platform