Retail Sales Rise Amidst Loss-Before-Tax Increase

  • Very Group ends relationship with HSBC after 10 years
  • Switches to Natwest for customer loan portfolio management
  • Retail sales rise 2.3% year-on-year during Q7W27D
  • Home and beauty category up 15%, toys, gifts and beauty up 7.3% YoY
  • Fashion and sports up 2.9%/11.2% YoY (excluding Nike)
  • Loss-before-tax increases to £22.9m, sales down 5% to £450.2m

The Very Group has ended its relationship with HSBC after a decade, opting instead for Natwest to manage the securitisation of its buy now, pay later offer. This comes after HSBC put Barclay family’s logistics company into administration last year. The online retailer provides finance options for purchases like clothes, toys, and household appliances, with 90% of sales made through customer loans. Very Group reported a 2.3% increase in retail sales YoY during the seven weeks to 27 December 2024, excluding Nike, Very UK grew by 4.5%, and Group retail sales rose 2.8%. Home and beauty category saw a 15% jump, while toys, gifts, and beauty increased by 7.3%. Fashion and sports experienced growth of 2.9%/11.2% YoY. However, the company’s loss-before-tax rose to £22.9m, with sales down 5% to £450.2m.

Factuality Level: 9
Factuality Justification: The article provides accurate information about The Very Group’s decision to switch lenders and includes relevant financial data such as sales growth, revenue, and loss-before-tax figures. It also offers context for the decision by mentioning HSBC’s actions against the Barclay family’s logistics company. However, there are some minor issues with dates (e.g., 2024 instead of 2021 and 2022). Overall, it is a well-researched and informative piece.
Noise Level: 3
Noise Justification: The article provides relevant information about The Very Group’s decision to switch lenders and includes some financial data on its sales performance. However, it could benefit from more in-depth analysis of the reasons behind the change in lenders and a broader context for the impact on the company and industry.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Very Group’s decision to switch lenders for its customer loan portfolio from HSBC to Natwest, which impacts financial markets and companies involved. It also mentions the retail sales growth and loss-before-tax increase of Very Group, affecting their revenue.
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 article, as it mainly discusses The Very Group’s financial decisions and performance.

Reported publicly: www.retailsector.co.uk www.retailgazette.co.uk