THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
Retail Solutions
Food & Drink

Very owner Shop Direct posts strong increase in sales and profit

Shop Direct, the owner of and, has reported its fifth consecutive year of record sales and profits.


Very owner Shop Direct posts strong increase in sales and profit

In the year to 1 July, group sales increased by 5.6% on a like-for-like basis, or 3.7% on adjusted basis, to £1.93 billion after Very saw sales growth of 14.6%, or 12.6% on an adjusted basis, to £1.26 billion.

Underlying pre-tax profit climbed by 10.2%, or 6.6% on an adjusted basis, to £160.4 million.

The company also increased its number of new credit customers by 7.6%, with 14.1% growth at Very.

During the period, Shop Direct incurred exceptional costs of £121 million. This included £112 million in regulatory costs resulting from an increase in customer redress claims volumes across its market.

Sales via smartphone accounted for over half of Shop Direct’s online sales for the first time as the The MyVery app drove 32% of all Very’s mobile sales. This was up from 21% in 2016.

Alex Baldock, group chief executive at Shop Direct, said: “We’re pleased to report our fifth successive year of record sales and underlying profits. Once again, Very and mcommerce were the big drivers of our growth.

“Our fashion performance stood out in a volatile market as we brought even more famous brands within reach of our customers. Spotting the athleisure trend early boosted sportswear and V by Very became an £150 million brand in its first full year.

“Our long-term investments in digital, data, personalisation and Very are coming good. And our obsession with winning the ‘three-second audition’ on smartphones also continues to pay off. We’re delivering one of the most relevant shopping experiences on a 4.7-inch screen, with our five-star apps, digital marketing expertise and leadership in personalisation.”

The company said artificial intelligence is already driving results for the business and that it is planning to launch one of UK retail’s first AI-powered chatbots for customer service shortly.

Looking ahead, Baldock said: “We don’t expect the economic backdrop to get any easier, but we’ve started our new financial year in line with expectations and are confident of delivering another record year.”



Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy