Debenhams offloads Sheffield distribution centre to Primark
As Primark expands into home delivery, its £90m deal to take over a Sheffield distribution centre will see the warehouse lease reassigned and its automation acquired from Debenhams Group.
The deal will see Debenhams receive £76.5m on completion, with the remaining £13.5m due when vacant possession is provided early next year.
The group has also agreed a new arrangement with a global third-party logistics (3PL) provider to fulfil its stocked products.
It said the agreement would allow it to operate more efficiently while scaling its Delivered by Debenhams fulfilment proposition beyond fashion.
The deal comes as both businesses expand their online operations: Primark recently announced that it is introducing home delivery for ecommerce orders, having previously focused its digital offering on its Click & Collect service.
The retailer’s parent company, Associated British Foods, said its growing digital maturity, combined with the success of Click & Collect and changes in the online market, created an opportunity for profitable growth through home delivery.
Debenhams Group, formerly Boohoo Group, changed its name in 2025 as it placed the Debenhams brand at the centre of its strategy.
The business acquired the Debenhams brand and online operations out of administration for £55m in 2021, but did not take on its physical store estate.
It has since developed the brand as an online marketplace, with third-party retailers able to sell through the platform.
In July, chief executive Dan Finley said the group’s platform model and diversified product range had enabled it to respond quickly to changes in consumer demand.
