Online Retailer’s Struggles Impact Supplier Coverage
- Credit insurance pulled for Very Group suppliers by Allianz Trade
- Profits fall 17% to £123.8m for the 39 weeks to 1 April 2023
- Group sales remain flat at £1.6bn due to a 2.5% dip in retail sales
- Credit insurers maintain or increase cover for some retailers
- Very revenue growth of 2.2% ahead of online non-food retail market
- Robust liquidity position
Suppliers for the Very Group have experienced a withdrawal of credit insurance from Allianz Trade due to concerns surrounding the retailer’s declining profitability. The decision was attributed to macro-economic pressures causing reduced consumer spending. Very Group’s profits dropped by 17% to £123.8m for the 39 weeks ending 1 April 2023, with group sales remaining stagnant at £1.6bn due to a 2.5% decline in retail sales amid a ‘heavily promotional environment’. A spokesperson stated that one of several providers reassessed its cover concerning The Very Group, while other credit insurers maintained or increased coverage for some retailers. This news follows Allianz cutting supplies’ cover for Boohoo by 50% in July and removing it entirely for some suppliers. Despite these challenges, Very reported a year-to-date Q3 revenue growth of 2.2%, outpacing the online non-food retail market, and maintaining a strong liquidity position.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Very Group’s financial situation and its credit insurance situation with Allianz Trade. It also includes a statement from a spokesperson for Very Group addressing the issue. However, it could provide more context on the macro-economic pressures affecting consumer spending.
Noise Level: 3
Noise Justification: The article provides relevant information about Very Group’s financial situation and the impact on its suppliers, but it could benefit from more analysis or context to make it a higher quality piece. It also briefly mentions Allianz Trade’s actions with Boohoo for comparison, which adds some noise to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: The retail sector, specifically Very Group’s suppliers
Financial Rating Justification: This article discusses a retailer’s falling profit and credit insurance being withdrawn by Allianz Trade, which impacts the company’s suppliers. It also mentions the impact on the online non-food retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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