The Very Group has just promoted its retail managing director Robbie Feather to group CEO with current chief executive Lionel Desclée departing on April 26 to “pursue new opportunities”.
Feather has been a part of The Very Group since 2021 and the new boss says he’s “excited” to be appointed CEO of what he described as an “outstanding business with a unique proposition”.
Under his predecessor, Very has gone through a huge digital transformation with the launch of its ecommerce platform Skyscape, strengthening its supply chain and partnering with the likes of Amazon Web Services on a generative AI innovation programme.
Despite the retailer having taken huge strides in terms of technology and innovation under Desclée, its financial results have been less impressive. The group’s most recent results for the 26 weeks to December 30, 2023, showed a £2m loss before tax, as well as the announcement of a fresh £125m funding package from global investment firm Carlyle and international investment house IMI to “support its growth strategy”.
Change at the top comes at a turbulent time for the retailer’s owners the Barclay family. The Barclays have recently sold delivery firm Yodel and fought to buy back The Telegraph late last year.
What could the new appointment mean for The Very Group, and what is to come for the retailer, given its long-term ownership status is still a grey area? Could Very be lined up for a sale, or would the City welcome a potential float?
Change at the top
Feather will step into the top job at the group with a wealth of retailing experience, having previously been the chief executive of luxury department store chain Fenwick where his time was marked by a push to modernise the business. Before that Feather held senior roles at Sainsbury’s Argos, including being a director on its board.
Very Group chair Aidan Barclay says Feather is “the perfect person” to lead the business through the next phase of its development due to his “strong track record of transformation and growth”.
Beth Bloomfield, senior retail analyst at Lumina Intelligence, echoes this, adding that Feather’s experience and “wealth of knowledge of The Very Group” will ensure he can take the company forward “successfully”.
While the financial performance hasn’t always been solid, Very has executed some successful initiatives under Desclée, such as his strategy focused on supporting families through price investments across toys, gifts and beauty, which saw a 13% rise year on year in 2022/23, as well as 7% growth in the first half of 2023/24.
While there have been successes with certain strategies, Bloomfield says that the retailer has been “very exposed” to the UK economic cycle.
She says: “Very Group’s strategy based around family is sound and with consumer confidence starting to grow and cost-of-living pressures easing, it should see a steady uptick in sales.
“It has been steadily building its brand portfolio with sports and leisure brands such as Castore and Gym + Coffee added to its roster.
“Very Group’s recent announcement of a new long-term partnership with Carlyle and IMI should ensure growth in the short-term.”
Sell or float?
One question is how The Very Group will perform in the long term, especially under the ownership of the Barclay family.
The retailer has explored numerous potential sales and floats over the years. The Barclays first planned an IPO for the brand in 2021, which would have been the first time the family had gone public with one of their businesses. While this never materialised, experts and insiders suggest such a move could be explored again.
A potential sale could also be on the cards, though City experts say this could prove more difficult, given the fact the owners have slapped a £4bn valuation on Very – a price the Barclays reportedly won’t budge from.
“Very has been through a period of some turmoil with the travails of its owners, who have been trying to sell the business for an absolute fortune for some time, not really seeing the reality of what inflation, higher base rates and the subsequent compression of living standards may mean for shoppers,” says Shore Capital head of research Clive Black.
He adds that the City will look at all businesses “on their merits” but says many firms would “have to sell existing holdings to fund new issues”.
“Such a position is not ideal and so, from a timing perspective, should Very wish to list, its owners may need to be patient.”
Whether its future lies with new owners or as a pubicly listed company, remains to be seen. However, under new leadership and with consumer confidence in its categories improving, the question of the longer-term ownership structure of The Very Group could raise its head again.
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