Very's investments in digital customer experience reflect “resilient” revenues

The Very Group, owner of the digital retailers Very and Littlewoods, has today announced its full-year results for the 52 weeks ending 1 July 2023.

Very UK’s revenue stood at £1.82 billion, up 1.9% from £1.79 billion the previous year. Meanwhile, The group’s revenue overall flatlined at £2.15 billion.

Adjusted EBITDA sat at £276.5 million, up from £291.4 million in 2022. The group noted its "good cost management" and "strong Very Finance contribution" helped it to combat rising inflation. Compared with the year prior, the adjusted EBITDA margin remained flat at 12.9% against FY20.

Group profit before tax was £4.6 million, compared to £63.9 million the year prior. This was impacted by the heightened cost of funding to the company.

In terms of categories, fashion and sports declined 8.2% year-on-year. However, the category's strong performers included casual womenswear, which was up by 4.8%, and casual menswear, which was up by 1%.

The Group expanded its own brand range, Everyday, by adding 900 lines. These lines spanned across women’s, men’s and kids’ fashion, with 85% of Everyday fashion items available for £30 or less.

Overall, Very's investment in pricing and assortment of key categories produced resilient revenues. For example, key categories including toys, gifts and beauty grew by 13% year-on-year. Not only that, but the company invested in tech, data and AI to improve customer experience. It launched an AI platform in partnership with Amazon Web Services to transform retail forecasting operations.

Lionel Desclée, CEO of The Very Group, commented: "Despite challenging economic conditions, our adaptable business model has driven market-beating top-line growth, improved cash flow year-on-year, and our best-ever customer satisfaction score. It’s down to the investments we made in pricing and our digital customer experience, our cost discipline, and the commitment of our people in serving families in the UK and Ireland.

"In the year ahead, we will continue to deliver a combination of investment-led growth – with a clear focus on improving our digital customer experience – and diligent cost management. While the market will remain challenging, we’re confident our proven and resilient business model, which combines multi-category online retail with flexible ways to pay, will continue to deliver for our customers."