Debenhams Group adopts AI to optimise pricing & promotions
Debenhams Group has deployed artificial intelligence (AI) to refine pricing and promotion strategies across its retail brands, including PrettyLittleThing, BoohooMAN, Karen Millen and Debenhams.
The group's partnership with Peak, an AI platform now operated as part of UiPath, has led to the integration of intelligent automation for product pricing decisions. The automated process covers thousands of SKUs, replacing traditional manual pricing efforts and enabling real-time, data-driven adjustments.
According to the company, shifting to an AI-led system is enabling more responsive actions to market demand, seasonal trends and inventory fluctuations. This capability is positioning the brands to bolster gross margins, support cash flow, limit excess inventory and maintain competitive price points for consumers.
The change in approach is also streamlining the process of discounting, now directing promotions based on individual product performance rather than broader, less targeted campaigns. The result is pricing that more closely tracks real-time demand, aligning with both customer preferences and commercial goals.
AI's operational impact
The adoption of Peak's AI pricing tools is also having operational effects, freeing staff from manual spreadsheet management and allowing more focus on strategic planning. The automated system is intended to create greater agility in product clearance and lessen the build-up of unsold goods.
Dan Finley, Chief Executive Officer of Debenhams Group, said the transformation has overhauled the company's approach to product pricing and promotions.
"With this technology, we've fundamentally changed how we approach pricing. AI gives us the ability to make smarter decisions at speed, ensuring our promotions deliver the best value for our growing customer base and driving both business performance as well as the customer experience," said Dan Finley, CEO of Debenhams Group.
Richard Potter, Chief Executive Officer at Peak, noted the partnership's positive results for the retail sector, highlighting AI's role in supporting decision-making rather than substituting for human expertise.
"This project illustrates how retailers can harness AI to enhance – not replace – human capability. This implementation has turned a pricing bottleneck into a competitive advantage and set a new benchmark for tech-led retail transformation. Our work with Debenhams Group demonstrates the power of AI to drive real commercial outcomes, not just through automation, but by enabling smarter, faster decision-making."
Data-driven retail strategies
Debenhams Group indicated that prior to the introduction of the system, pricing adjustments and markdowns were largely reactive and dependent on manual review cycles. By automating these processes, the company is aiming to reduce reliance on markdowns implemented as a last resort and to facilitate smoother movement of products through end-of-season clearance. The improved process is also designed to limit terminal stock and contribute positively to cash flow.
The company's broader objective is to support growth by operating as a more agile and technology-oriented retail business. The changes are part of a larger strategy to adopt digital solutions that address the challenges of a competitive retail environment.
Peak's AI platform is used by several industry players for inventory and pricing optimisation, adapting its technology to clients with varying requirements. Its acquisition by UiPath is part of its continued expansion in providing AI solutions for business operations.
Debenhams Group continues to focus on data-driven advancements as part of its commercial and customer service strategies across its branded retail channels.
