The Very Group has made an impressive comeback, achieving a record-breaking revenue of over £2 billion and returning to profitability in the last fiscal year. This accomplishment was driven by a substantial increase in group retail sales, with Very.co.uk seeing a significant 10.5% surge in retail sales to £1.23 billion. The online retail platform also experienced a notable growth in customer base, with a 14.1% rise to 3.4 million customers, contributing to the total group customer base reaching 4.5 million, a 10.6% increase. Additionally, Very.co.uk expanded its market share within the non-food sector by over 1ppt in the last quarter.
Despite a projected decline, Littlewoods only saw an 8.8% drop in sales to £460.9 million, within expected parameters. The Very Group reported a pre-tax profit of £48 million and an underlying EBITDA of £264 million, despite Covid-19 related costs. Efforts to increase efficiency and cost-saving measures helped offset the impact of these costs on the company’s overall performance. Although the group’s gross margin decreased by 3.1ppts to 36.5%, largely due to factors such as lower financial services income and additional provisioning for Covid-19 related bad debt, the financial services business remained resilient.
The company experienced significant growth in various product categories, particularly in women’s and children’s sports clothing, showcasing growth rates of 21.6% and 22.6% respectively. The introduction of over 100 new brands and the extension of existing partnerships, including Topshop and Mint Velvet, contributed to this growth. Investments in digital infrastructure, such as the launch of the highly automated fulfilment centre Skygate, aimed to enhance operational efficiency during peak trading periods.
Furthermore, shifting consumer shopping habits during the lockdown have influenced how people shop online, with an increase in shopping during working hours and a preference for mobile shopping and direct deliveries over traditional click & collect services. While shopping patterns have begun to return to normal, the trend towards mobile shopping and direct deliveries persists, indicating a lasting change in consumer behavior post-lockdown.
Overall, The Very Group’s success in adapting to changing consumer behavior and investing in digital infrastructure has positioned them for continued growth and success in the future.
Useful links:
1. Very.co.uk
2. Retail Gazette
