Robust growth for Verkkokauppa.com in Q3/2021

Verkkokauppa.com is one of the first retailers to report Q3 earnings. It reported robust growth against Q3/2020 as well as against H1/2021. Growth of +9 % has picked up from the first part of the year.

With higher growth there was also reduced margins. Gross profit was exactly the same as last year, but with 9 % higher sales the gross margins were reduced by -13,7 %. Profits also decreased by -17,1 %.

Within the product categories the core categories drove much of the growth in revenue. Also B2B business reported strong growth. It’s share of total business went from 18 % in Q3/2020 to 22 %. The increasing share of B2B could have a positive impact on the margins and profits as traditionally B2B business tends to be less price sensitive as the core B2C business.

Export business grew slower than the overall business. It’s share went down from 7 % to 6 %.

Within the sales channels, the decline of the bricks & mortar channel seems to continue. It's share of revenue share came down from 40 % (Q3/2020) to 35 %. In terms of absolute revenue numbers the pure bricks & mortar revenue (Click & collect not included?) decreased by -4,6 % whereas the online channel increased by +19 %.

Verkkokauppa seems to have gained more loyalty among it’s customer base. The amount of website visits declined, even though the revenue increased.