Online Retailer Thrives as Physical Stores Struggle
- 25.2% year-on-year increase in retail sales for Very.co.uk over Christmas period
- Record-breaking sales due to Covid-19 pushing retail online
- Revenue including financial services income increased by 23.3% year-on-year
- Overall group revenue surpassed £500m for the first time
- 46.2% rise in homeware and 44.8% increase in electrical categories
- 200.5% growth in home improvement products
- 33% growth in sales via Very mobile app
- Group retail sales grew 18.1% compared to the same period last year
- Additional 500,000 new customers acquired during the seven-week period
- Strong momentum for 2021 due to online, multi-category business model with flexible payment options
Very.co.uk experienced a remarkable 25.2% year-on-year increase in retail sales during the seven weeks leading up to Christmas 2020, marking the best recorded sales period so far. The surge in online shopping was driven by Covid-19 restrictions on physical stores. Revenue, including financial services income, rose 23.3% year-on-year, and overall group revenue exceeded £500m for the first time. Homeware saw a 46.2% increase, electrical categories grew by 44.8%, and home improvement products experienced a 200.5% rise due to the pandemic’s DIY trend. Sales via the Very mobile app jumped 33%, with Black Friday retail sales up 25.8%. Web traffic increased 55% year-on-year, and Littlewoods subsidiary group retail sales grew 18.1%. The company gained 500,000 new customers, a 25.5% increase from the previous year. CEO Henry Birch credits the strong performance to UK families’ determination to celebrate Christmas despite challenges and their flexible payment options.
Factuality Level: 9
Factuality Justification: The article provides accurate information about the increase in retail sales for Very.co.uk during the Christmas period, attributing it to the pandemic pushing retail online and providing specific categories that saw growth. It also includes quotes from the CEO of The Very Group discussing their performance and future outlook.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in retail sales for Very.co.uk during the Christmas period due to Covid-19 pushing retail online and highlights the growth in specific categories such as homeware and electrical. It also mentions the addition of 500,000 new customers and the CEO’s optimism for 2021. However, it lacks a broader analysis or context on the overall impact of Covid-19 on retail industry and does not explore potential long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: The financial performance of Very.co.uk and its subsidiary Littlewoods are impacted as they report increased sales, revenue growth, and customer acquisition during the Christmas period.
Financial Rating Justification: The article discusses the financial results and performance of Very.co.uk and Littlewoods, which are both retail companies, making it relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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