JD.com is considering a 2 billion-pound bid for The Very Group, a UK-based online retailer with a century-old mail-order legacy. The move would mark another step in the Chinese company’s push to expand its footprint in Europe, where it has already acquired German electronics chains MediaMarkt and Saturn. The Very Group, which owns the Very and Littlewoods platforms, is currently under the ownership of US investment firm Carlyle, which is reportedly seeking to sell the company. No formal comments have been made by either party about the potential deal.
A British Retailer in Play
The Very Group’s 2024/25 financial year saw revenue of 2.1 billion pounds, a slight decline from the previous year but accompanied by improved profitability. The company blends traditional retail models with private-label brands and partnerships with external labels. Its online operations have grown steadily, though it remains distinct from the digital-first strategies of some competitors.
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The company’s interest follows stalled attempts to acquire British retailers Currys and Argos last year. The move has since shifted focus to The Very Group, which operates in a market where online sales are increasingly dominant. MediaMarkt, part of the company’s German acquisition, has seen its marketplace expand rapidly, contributing to the company’s growing presence in Europe.
The Very Group’s platforms could eventually integrate with the company’s own delivery service, JoyExpress, which is already active in the UK. JoyExpress is set to handle logistics for MediaMarkt and Saturn in the future, suggesting a broader strategy to control the supply chain from end to end.
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Logistics as a Strategic Advantage
Jingdong Logistics, a subsidiary of JD.com, has been expanding its European network. The company now operates over 60 warehouses and depots across the continent, enabling faster order fulfillment and local storage. Last year, the logistics arm reportedly doubled in size, a move that positions the company to better compete with rivals like Alibaba, Shein, and Temu.
The expansion comes as the company seeks to consolidate control over inventory and distribution. By acquiring The Very Group, the company could integrate its existing logistics infrastructure with the retailer’s operations, potentially reducing costs and improving delivery times. This would align with the company’s broader goal of dominating the European ecommerce landscape.
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The US investment firm’s decision to sell The Very Group may reflect broader challenges in the retail sector, where traditional players struggle to adapt to digital competition. The company’s entry into the UK market through Joybuy and JoyExpress suggests a long-term commitment to the region, even as the company navigates regulatory and cultural hurdles.
The potential acquisition has not yet been confirmed, but the valuation aligns closely with the company’s revenue figures. If the deal proceeds, it would mark a significant shift in the UK retail sector, where foreign investors have historically played a limited role. The outcome could influence how other international companies approach the European market in the coming years.