Very.co.uk and Littlewoods.com owner Shop Direct has seen its third year in a row of record profits, with pre-tax profits increasing 78% to £71.7 million.
Shop Direct, which saw its group sales rise 3% to £1.8 billion, said the increase was driven by sales growth, improved discipline across costs, selling and credit risk as well as its moves towards becoming a fully digital retailer.
Chief executive of Shop Direct, Alex Baldock, said: “We passed some important milestones last year. We called time on the catalogue, and we are now a pureplay retailer dedicated to digital. We’ve transformed quickly to this more focused business – only three years ago, nearly three-quarters of our sales were from catalogue customers.
“We’re also more focused on Very.co.uk and Littlewoods.com, made possible by the closure of our three smaller brands.
“Being online-only means more mobile innovation, especially in personalisation where we aim to offer each customer an experience as unique as she is. We’ve tailored her online experience, including the marketing that brings her in, the online shop she then enters, and the way we engage with her after she’s bought. Our investment in Big Data and technology has started to pay off and is making these new levels of personalisation possible.”
Mr Baldock said that the company has made a “strong start” and expects another record year. He added: “That said, we’re nowhere near the finished article and we’ve only scratched the surface of the full potential here. The competition is ferocious so we must and will continue to invest heavily in our digital future, and keep up the pace on our transformation. These are exciting times for Shop Direct.”
