Following today’s release of The Very Group’s figures for the 26 weeks ending 28th December 2024; Aliyah Siddika, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Despite reporting modest growth during the festive period, The Very Group had a challenging second quarter this financial year, with a 4.5% decline in group revenue to £1,171.1m. Littlewoods continued its managed decline strategy with a 15.3% revenue decrease; Very UK also experienced a revenue fall in Q2, down 3.2%. Amid continued financial pressures, the online landscape is increasingly competitive, and Very UK’s performance has faltered among the high level of competitive prices and discounts. Very UK did face several challenges, including tough comparatives across some of its key categories and external factors like decreased stock levels of Nike products impacting growth. However, The Very Group has managed its costs well within this challenging economic climate; adjusted EBITDA rose 17.4% to £150.2m. Its cost management strategy will be crucial in navigating the expected cost increase impacting its business in 2025 due to changes in national insurance contributions and an increase in the minimum wage.
“Home remained Very UK’s top-performing division in the second quarter, with sales increasing by 7.3% year-on-year, driven by home accessories, textiles and upholstery. The timing of the second quarter attributed to this surge, which covered the summer, autumn, and winter seasons. Very capitalised on this by offering a diverse range of homewares throughout each season, introducing new products such as its own Very Home affordable range of outdoor furniture and introducing seasonal trinkets and decorations. Consumers could easily update their homes at an accessible price point.
“While Fashion and Sports declined by 6.0%, excluding Nike, the category saw growth of 1.7%, driven by a significant 18.4% uplift in its sports category. Very took advantage of the Summer of Sport by expanding its range of sports equipment and promoting family sports activities. Very has also recently broadened its range of products from on-trend brands like Coach, targeting consumers looking for more affordable designer options. This approach aligns well with the current trend of declining popularity in luxury designer brands, suggesting that Very should introduce more accessible luxury brands to attract customers, such as Ganni and Reformation.”
