QVC profits

[AndiK]

QVC UK’s pre-tax profits for 2022 were apparently down around 78% (£13.4m vs £60m in 2021) on 13% lower turnover (£456m vs £526m). That doesn’t sound good, does it? “Supply chain interruption from China” is seemingly partly to blame but I think it has a lot to do with the fact that I am not buying all the Yankee Candle, Molton Brown and nail / make-up sets I used to!

But seriously - and I know we periodically discuss this on here - why do you think it is? Do you think changing or introducing certain practices would help? Capped postage, for example, or would the cost of that to Q outweigh any increase in sales? Do you think they take much of a hit with the extended “quibble-free” money back guarantee where people can potentially return heavily used goods for a full refund? (We know it’s not entirely quibble-free, of course, but it is still very generous.) I think it’s probably a combination of factors including strong competition and a difficult retail environment.

 

[stratobuddy]

QVC UK’s pre-tax profits for 2022 were apparently down around 78% (£13.4m vs £60m in 2021) on 13% lower turnover (£456m vs £526m). That doesn’t sound good, does it? “Supply chain interruption from China” is seemingly partly to blame but I think it has a lot to do with the fact that I am not buying all the Yankee Candle, Molton Brown and nail / make-up sets I used to!

But seriously - and I know we periodically discuss this on here - why do you think it is? Do you think changing or introducing certain practices would help? Capped postage, for example, or would the cost of that to Q outweigh any increase in sales? Do you think they take much of a hit with the extended “quibble-free” money back guarantee where people can potentially return heavily used goods for a full refund? (We know it’s not entirely quibble-free, of course, but it is still very generous.) I think it’s probably a combination of factors including strong competition and a difficult retail environment.

Capped postage!

Not having this often puts me off buying if I want more than one different item at a time, so I end up not buying any of them.

 

[MrMarple]

Free returns is another issue IMO.
When I buy clothes from any other retailer, I pretty much know within five minutes whether I’ll be keeping them or not so a 60 day MBG is totally pointless for me so why would I risk it with Q knowing full well that I’d have to pay to return the goods if I decided that I didn’t like them?
Answer, I wouldn’t.
In fact, apart from skincare, I really don’t see the point of the guarantee at all really to be honest.

But yes, capped postage would definitely make it much more likely for me to spend more with them as well.

 

[JeepSwensonfan]

That's what happens when you only target products to one demographic.

 

[merryone]

Shopping channels aren't necessary any more and that's the problem, the folk who rely on them are a dwindling breed ie don't do online shopping and can phone in and place an order. Internet savvy shoppers are wise to the fact that other retailers are offering better terms and better deals. There a fewer points of difference, ie, being able to see an online demonstration, or an outfit being modelled but with other retailers allowing their customers to return something free of charge if it's not suitable cancels that out. The 60 day mbg I guess is useful still in some ways eg, you can get some of your money back if that expensive skin cream brings you out in a rash, with other retailers it's just an expensive mistake. I'd miss watching if it did ever go under, but I don't buy very much from them so I wouldn't be a great loss.

 

[Grizelda]

I'd be sorry if QVC went belly up. I hope it doesn't happen.

 

[stratobuddy]

I'd be sorry if QVC went belly up. I hope it doesn't happen.

It would be their own fault for ignoring all the suggestions regularly made on this forum, assuming they read it.

And if they don't read it, more fool them for ignoring constructive feedback.

 

[JeepSwensonfan]

And their reviews need to be legit, not oooohhhh I love this, I bought 2.

 

[markd]

Unless an item is significantly cheaper than anywhere else I refuse to buy now because of the p&p charges, I can't think of any other company that charges p&p on every single item it's ridiculous especially as most companies offer free p&p when you buy more not penalise you for spending more!

 

[Bea Frugal]

The workings of qvc have always been shrouded in mystery. They screw their suppliers for good deals, most of which are bundles of bits and bobs that people are starting to think twice about when they only really want one item. They get stuck with tons of unsold stock. They don’t have the overheads of the high street but the returns policy must cost a bomb so they can’t abolish postage. They have to second guess what people want all the time and often fail miserably, stuck on a loop of beauty, expensive clothing and cleaning products with some very random sets of specs or tweezers thrown in for light relief. How many vacuum cleaners or hairdryers can we need? It’s very true that they mostly only have one customer base, the menopausal woman with deep pockets. Is she tall or small, fat or thin, frumpy or mutton? They try and suit everyone and please no one. For a while a lot of things were only on advanced order so that seemed a sensible attempt to reduce the warehouse stockpile. They badly need some new buyers and some new ideas. I have found some good brands through them and wish them well because I like having a look now and then but very rarely to buy.

 

[miss molly]

The days of the really good Beauty TSV'S are long gone in my opinion can't remember the last one I was excited for.

 

[ClaireKelly]

When they started they had no competition and had exciting products that were hard to get anywhere else. Really good beauty TSV’s that sold out within an hour in some cases, and felt really special.
Now we all shop online and are used to shopping around for the best price. Free postage is the norm and free returns. And fast despatch and refund.
QVC charge postage on every single item, have been caught out flogging old stock, and their returns are not efficient. Their clothes are frumpy and are often send out when they’ve clearly been worn…
They are so out of date it’s a wonder they are still going to be honest.
I only buy beauty products from them and the amount I buy has reduced drastically.
It’s a shame, but they have never bothered to update so only have themselves to blame.

 

[Cashers]

Totally agree with all of the above comments. I used to buy so much from QVC, probably, no definitely, most stuff I didn't actually need but was a bit different. In the last 18months I have drastically reduced my QVC spending. Nothing much draws me in to buying these days, nothing new and exciting. I would never buy clothes from them these days, ditto shoes, mainly due to the stupid prices, also as everyone else says, due to p and p. I have even stopped buying most of my beauty products - Boots and John Lewis and M and S Shave just as good deals imo. And I'm not even getting on to the subject of the food items they sell! Those prices are eye watering!! And most with an additional £5+ postage to add on.
having said all this, I have actually just bought the TSV! For my daughter may I add

 

[donna255]

I remember a friend a few years back as we wandered around M&S beauty hall, so brands just seem to use QVC as a stepping stone to get their brand out there. They don't stay longer than perhaps a few years, then move on. The number of brands in M&S which had been on QVC and left was big.

As for capped postage or free, this has been brought up for years on QVC US customers asking on their QVC forum. It has never happened and I doubt ever will. We do get the odd free shipping on certain products, but I wonder if that is actually the brand themselves covering it?

 

[Dame Fondacox]

Their business model has been beyond outdated for years now and they've made no attempts to change with the environment they operate in. I haven't watched live (or even landed for a few minutes when channel surfing) for years now. If there's a product or deal that I'm interested in, which I usually become aware of on here, then I'll watch a recorded demo. That's the only advantage they've got over other online retailers, the demos are generally very informative for the beauty products, at least (that's if you can tolerate the screeching hyperbole!). Even then, I'll Google the product to see if there's a better deal on offer elsewhere and this is typical behaviour among savvy online shoppers. Essentially on occasions, they're providing a consumer information service. This may be fine with the BA's but is not the intention of QVC and they need to be more responsive to consumer behaviour and competitively do things to incentivise loyalty. Amazon recently refunded me £11.00 on a BF deal I'd bought because they reduced the price further over the weekend - this was unprompted by me, and I was sent an email to say the money would be refunded to my card within two-five days. If they don't change and improve, their profits will continue to dwindle and their live shows will be scaled back, with the main channel becoming more of a platform for repeated online demos.

 

[Nicky-j]

It's a problem affecting almost all retail. I'm certainly no financial genius but it seems clear that, since profits were down by a much higher percentage than turnover, QVC's expenses (running costs, stock etc) soared during that period (as they did for just about every business). It suggests to me that they aren't passing on all increases in cost to customers and are taking most of the hit themselves. These are difficult times. QVC have the same pressures as other businesses. It's a tricky balance between making efficiencies, whilst maintaining your level of service. No-one can work with the lights off!

 

[May]

Amazon ( I know they have a connection with them though ) and Argos are big players these days ( Argos customer service is fab ) They deliver on actual day of delivery if you pay extra ? Or something like that
It’s like Royal Mail .. they are so outdated
Most couriers let you know where they are .. who they are .. who their doctor and invite you to their weddings ( lol not really but you get the gist ) but Royal Mail .. not as up to date as many main ones from what I can see ( unless others have better experiences )

 

[alisonwt]

I'm glad to say I don't buy half as much as I used to, but I still spend far too much. I do buy most of my shoes from them as the chance to wear them properly before deciding if they are suitable is worth the £2.94 to return them if they don't as opposed to having to keep them from any other retailer. I often find that shoes which seem wonderful when tried on in the house then turn into toe mangling monsters the second I step outside, so they then cost me the postage instead of the cost of keeping the shoes.

 

[Old Man Steptoe]

Don’t forget they are paying these so called celebrities to endorse their products!
They don’t come cheap especially the so called designers
Outdated almost prehistoric in shopping terms of products and delivery
Plus in the long term if you go woke you go broke especially on beauty products!
As someone above hinted shopping channels will be a thing of the past soon.

 

[donna255]

Amazon ( I know they have a connection with them though ) and Argos are big players these days ( Argos customer service is fab ) They deliver on actual day of delivery if you pay extra ? Or something like that
It’s like Royal Mail .. they are so outdated
Most couriers let you know where they are .. who they are .. who their doctor and invite you to their weddings ( lol not really but you get the gist ) but Royal Mail .. not as up to date as many main ones from what I can see ( unless others have better experiences )

I had a knock at the door last night at 6.30 pm, I thought it must be the electric man to read the meter as he is due. No, a postman with a parcel for me, seems it was supposed to be delivered yesterday but put on the wrong van. He was on his way home and decided to deliver it to me!!! Yes, I was shocked.

The electric man has not come yet, so submitted my own reading.