Very Group swings back to profit following lockdown sales surge

ONLINE RETAILER Very Group has swung back into profit after group sales surged above £ 2bn for the first time.

The group, which runs Very. co. uk and Littlewoods, saw sales soar after it was boosted by higher demand following the coronavirus lockdown in March.

Very Group said it saw sales growth of 34 per cent over the quarter to the end of June as customers moved online following the mass closure of high street stores.

It was hit by around £ 23m in Covid- related costs but said these were more than offset by the spike in sales.

The group posted a pre- tax profitof£ 48mfortheyeartoJune 30, after it saw total revenues rise by 2.9 per cent to £ 2.05bn.

Sales have continued to grow into the current trading period, with the company delivering “double- digit” growth in recent months.

Chief executive Henry Bird said that the group is “not concerned” about the impact of the second wave and tighter lockdown restrictions as a result of the pandemic.

“Because of the actions we’ve already taken and trends we saw at the start of the pandemic, we are not concerned, about the impact of further restrictive measures or a full lockdown situation”.

Mr Bird also stressed that the company is optimistic about trading over Black Friday and the Christmas period despite potential disruption as a result of the pandemic.

He said: “Both Christmas and Black Friday have always been important for us, particularly in gaining new customers, and Black Friday has been profitable for us historically.

“This year we are expecting both to be bigger than ever before.

“We think the cause of that will be because Covid is likely to impact people going to the high street and that people will be able get everything in one place from visiting our site, apart from food.”

Growth was driven by surging sales at Very. co. uk, which reported a 10.5 per cent jump in retail sales to £ 1.23bn for the period.

Meanwhile, the group said its Littlewoods brand saw sales continue to decline, sliding by 8.8 per cent to £ 460.9m for the period.