What is Brief History of Verywear Company?

What is Verywear's Retail Journey?

Verywear, a key player in apparel retail, offers a wide array of clothing for men and women across its brands like Cevimod and Devianne. Its evolution is closely tied to The Very Group, reflecting a significant shift from traditional stores to a robust online presence.

Tracing its lineage to Littlewoods, founded in 1931, Verywear's history is rooted in accessible mail-order retail. Today, as part of The Very Group, it operates as a leading UK-based digital retailer.

What is the brief history of Verywear?

The Verywear company history is a tale of two distinct origins converging. Its direct lineage within The Very Group stems from the 2005 merger of Littlewoods and Shop Direct, but its deeper roots reach back to 1931 with the founding of Littlewoods by John Moores.

Verywear Founding Story: A Dual Heritage

The Verywear company's origins are intertwined with two significant entities: the UK-based Very Group and the French retailer Groupe Verywear. Understanding the Verywear founding story requires looking at both.

• The UK lineage traces back to Littlewoods, established in 1931 by John Moores, initially as a football pools business that expanded into mail-order retail by 1932.
• The core principle of making goods accessible, a hallmark of the early days of the Verywear company, continues to influence its flexible payment options.
• Shop Direct, another key predecessor, was formed from the acquisition of Littlewoods and Great Universal Stores by Sir David and Frederick Barclay in 2003, initiating a shift towards digital retail.
• The French entity, Groupe Verywear, was established in 1882 by master tailor Jean-Louis Devianne, who opened his first boutique 'Aux Deux Nations'.
• This French operation, distinct from the UK's Very Group, was officially registered as a legal entity on December 21, 1990, and focuses on physical retail stores.

The French Verywear entity, with approximately 500 employees and headquartered in Wasquehal, France, began with a focus on physical retail stores. Its initial business model centered on a multi-brand, multi-sign approach to ready-to-wear clothing for men and women, featuring brands such as Cevimod, Devianne, Magvet, and Stanford. This approach to Revenue Streams & Business Model of Verywear highlights its retail-centric beginnings.

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The early growth of the entity that would become The Very Group, and by extension, Verywear's broader market reach, was characterized by a strategic shift from traditional mail-order to digital retail. After the merger of Littlewoods and Shop Direct in November 2005, the combined entity was known as Littlewoods Shop Direct Group, rebranding to Shop Direct Group in May 2008 and then simply Shop Direct in 2013. A pivotal moment in this digital transformation was the launch of Very.co.uk in 2009, specifically targeting the online shopping generation. The company achieved profitability in 2014 after a decade of losses and subsequently transitioned to a 100% digital model in 2015, phasing out traditional catalogues and consolidating heritage brands into Very.co.uk and Littlewoods.com. This digital-first strategy was crucial in shaping its trajectory within the evolving retail landscape.

Digital Transformation and Online Launch

The company underwent a significant digital transformation, launching Very.co.uk in 2009 to capture the online shopping market. This move was instrumental in its transition to a fully digital model by 2015, phasing out catalogues and consolidating brands.

Financial Turnaround and Digital Consolidation

After a decade of losses, the company achieved profitability in 2014. The subsequent year marked a complete shift to a digital-only strategy, integrating various heritage brands onto its online platforms.

European Expansion Through Acquisitions

The French-based Verywear (Groupe Verywear) focused its early expansion on acquiring regional apparel chains. Key acquisitions included Magvet in 2006, followed by Cap Mod and Stanford in 2007, strengthening its presence in Eastern France and Paris.

International Presence and Brand Evolution

In 2009, the group expanded internationally with its first Devianne store in Hungary and rebranded to Groupe Verywear. By 2010, the acquisition of Astermod and its brand Julie Guerlande brought the total points of sale to 117 across France, Spain, the Netherlands, and Canada, reflecting a multi-brand, multi-channel approach and contributing to the Mission, Vision & Core Values of Verywear.

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The Very Group, encompassing Verywear's retail operations, has a history marked by significant strategic shifts and adaptation to market dynamics. A pivotal moment was the complete transition to a digital-only model in 2015, consolidating brands under Very.co.uk and Littlewoods.com, and focusing on online retail and flexible payment solutions. The company rebranded to The Very Group in 2020 and launched its automated fulfillment center, Skygate, underscoring its commitment to technological advancement.

Digital-First Transformation

The shift to a digital-only model in 2015 allowed for a streamlined focus on online operations and the development of flexible payment options, enhancing customer accessibility.

Automated Fulfillment

The introduction of the Skygate automated fulfillment center in 2020 signifies a commitment to improving operational efficiency and delivery capabilities.

Financial Services Integration

The company's financial services, including interest-bearing credit accounts, are a significant revenue stream, contributing £392.2 million in FY23, demonstrating a successful integration of financial products with retail offerings.

Sustainability Goals

The Very Group has set ambitious environmental targets, aiming to reduce absolute Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030, with a net zero ambition by 2040.

The company has navigated a challenging retail landscape, including a 6% decline in fashion and sports sales in Q2 FY25 due to economic pressures and a heavily discounted market. Separately, the French entity Groupe Verywear faced receivership and judicial reorganization in 2020, leading to job cuts and brand discontinuation, highlighting the distinct challenges faced by different entities with similar names.

Market Downturns

The broader retail market experienced a 6% sales decline in Q2 FY25, impacting categories like fashion and sports due to economic headwinds and aggressive discounting.

Profitability Turnaround

Despite market challenges, the company achieved a £6.1 million pre-tax profit in the half-year ending December 28, 2024, a recovery from a £2 million loss in the prior year, driven by cost control and a focus on higher-margin sales.

Operational Restructuring

The French Groupe Verywear underwent judicial reorganization in 2020, resulting in 109 job cuts and the discontinuation of several brands, illustrating the severe impact of market difficulties and the COVID-19 crisis.

Category Performance

While some sectors faced declines, home accessories, textiles, and upholstery saw a 7.3% growth in Q2 FY25, indicating resilience and strategic focus within specific product areas. Understanding the Target Market of Verywear is crucial for navigating these varied performances.

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The journey of the company that includes Verywear's operations is a story of significant evolution, from its origins in 1931 with John Moores' Littlewoods to its current form as The Very Group. Key transformations include the 2003 acquisition and merger of Littlewoods and Great Universal Stores by Sir David and Frederick Barclay, leading to the formation of Shop Direct. The brand's digital focus intensified with the launch of Very.co.uk in 2009, and by 2015, the company transitioned to a fully digital model, consolidating its heritage brands. A major rebranding to The Very Group occurred in 2020, coinciding with the launch of its automated fulfillment center, Skygate. Most recently, in September 2024, The Very Group launched 'Very Media Group,' enhancing its retail media capabilities, and reported a half-year pre-tax profit of £6.1 million in December 2024.

Financial Fortification and Digital Investment

Looking ahead to 2025, the company aims to further enhance profitability through a focus on higher-margin sales and stringent cost management. Strategic investments in technology, including a cloud-based platform, are planned to improve customer experience and operational efficiency at its Skygate fulfillment center.

Market Trends and Consumer Behavior

The UK fashion e-commerce market is projected for substantial growth, reaching USD 89.5 billion by 2033. In 2025, mobile shopping is expected to dominate, with 40% of consumers preferring smartphones, and social commerce is rapidly expanding, with nearly 20 million UK residents anticipated to shop via social platforms.

Sustainability and Circularity Initiatives

The company is actively promoting take-back partners throughout 2024 as part of its sustainability efforts. Ambitious environmental targets include a 50% reduction in textile carbon footprint by 2030 and achieving net zero by 2040.

Future Retail Models and Vision Alignment

By 2030, the company plans to integrate circular business models, such as resale, repair, or rental, into its retail offerings. These forward-looking strategies align with evolving consumer preferences for sustainability and digital convenience, reinforcing the founding vision of making desirable products easily accessible.

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