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Company to Become 'QVC Group' in Q1 2025, Leveraging the Brand Equity of Flagship Brand
WEST CHESTER, Pa., Nov. 15, 2024 /PRNewswire/ -- Qurate Retail GroupSM, part of Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP), today announced a new strategy to build on its proud legacy in TV and expand into a live social shopping company. As part of this, Qurate Retail Group will become "QVC Group," doubling-down on the brand equity of its largest flagship brand.
"Through our new Growth Strategy, we will purposefully intensify our already successful efforts in social and streaming to reach fast-growing audiences," said David Rawlinson II, President and CEO, Qurate Retail, Inc. Rawlinson discussed the growth plan yesterday at Qurate Retail's annual Investor Meeting, held concurrently with the annual Investor Meeting of Liberty Media Corporation in New York. "Our winning edge lies in our differentiated live content production, fit-for-purpose retail model, and holistic content distribution."
The goal will be to achieve $1.5 billion+ run-rate revenue from streaming and social within three years, while maintaining stable, double-digit adjusted OIBDA margin1.
Qurate Retail Group is nearing the end of its multiyear Project Athens initiative, which has materially improved the business by driving growth in profitability despite a challenging media and retail landscape. Through Project Athens, the company instilled operational rigor and leaned into what makes Qurate Retail not just great but distinct: engaged and loyal customers, compelling live shopping content, fine-tuned brand and merchandising expertise, and remarkable supply chain capabilities. Overall, Project Athens is expected to deliver over $500 million in adjusted OIBDA run-rate impact through the end of 20242.
"Strengthened by Athens, and inspired by shopper behaviors, we are expanding our core for the next era of growth," said Rawlinson. "Live social shopping is a natural evolution for us. We have always been live on television, and our programming has always had this deep human and social component. Our customers are spending dramatically more time on social media, and that is increasingly where they are finding inspiration and shopping."
QVC Group will organize around three priorities to WIN in live social shopping:
Wherever She Shops
On social, QVC Group will extend its sales, content and celebrity expertise to social-first formats with the most popular platforms among its core audience. The company will develop a platform-tailored approach for social, leveraging creator affiliate storefronts, live streams, organic media, paid media, and more.
"We saw significant follower growth from QVC's Age of Possibility campaign and our launch on TikTok Shop," Rawlinson said. "We know we have large opportunities on social."
On streaming, QVC Group will continue to amplify its own QVC+ and HSN+ streaming platform and develop streaming commerce propositions for non-owned audiences on channels like YouTube TV, Sling, Roku, Hulu, Netflix and others.
Inspiring People and Products
QVC Group will enhance its leading production studios, building new capabilities to efficiently create purpose-built content for its 24/7 live shopping environment, extending across social, streaming, linear TV and digital distribution points. The company will create an optimized workflow from concept development to filming, editing and multi-platform distribution. QVC Group will tailor content to different formats (vertical for mobile, horizontal for smart TVs) and platforms (TikTok, Facebook, YouTube, etc.), while maintaining QVC's and HSN's brand voices.
New Ways of Working
Through Project Athens, Qurate Retail Group has adopted new ways of working and embraced a culture of transparency, rigor, pace and continuous improvement. As QVC Group, the company will maintain this discipline and continue to find efficiencies to fund its growth. The company is extending this rigor to its Cornerstone brands through a transformation plan to grow revenue and OIBDA.
QVC Group: A Global Collection of Leading Brands
The company's new name will help solidify its place as the leader in shoppable entertainment.
"QVC is a globally well known, highly regarded brand with goodwill and trust built over decades," Rawlinson said. "It immediately conveys what makes this company so special; and it gives us a terrific foundation to build around as we target growth in the future."
QVC Group's portfolio of brands remains the same: QVC, HSN, Garnet Hill, Grandin Road, Ballard Designs and Frontgate. Each brand has distinct customers, a distinct value proposition, a distinct assortment, a distinct brand promise, and a storied legacy of innovation in its space.
The company will continue to operate as Qurate Retail Group until Q1 2025, when it will officially become QVC Group.
1Consolidated Qurate Retail, Inc.
2Total projected impact based on 2024E forecast
This press release includes certain forward-looking statements, including statements about business strategies and initiatives (including Project Athens and Cornerstone's transformation plan) and their expected benefits, market potential, future financial performance and prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to Qurate Retail, Inc. ("Qurate Retail") and QVC, Inc. ("QVC"), changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of future public health crises), issues impacting the global supply chain and labor market and use of social media and influencers. These forward-looking statements speak only as of the date of this press release, and Qurate Retail and QVC expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Qurate Retail's or QVC's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Qurate Retail and QVC, including their most recent Forms 10-K and 10-Q, for additional information about Qurate Retail and QVC and about the risks and uncertainties related to their respective businesses which may affect the statements made in this press release.
About Qurate Retail Group
Qurate Retail GroupSM comprises six leading retail brands – QVC®, HSN®, Ballard Designs®, Frontgate®, Garnet Hill® and Grandin Road® – all dedicated to providing a more human way to shop. Qurate Retail Group is the largest player in video commerce ("vCommerce"), which includes video-driven shopping across linear TV, ecommerce sites, digital streaming and social platforms. The retailer reaches more than 200 million homes worldwide via 15 television channels, which are widely available on cable/satellite TV, free over-the-air TV, and FAST and other digital livestreaming TV. The retailer also reaches millions of customers via its QVC+ and HSN+ streaming experience, websites, mobile apps, social pages, print catalogs, and in-store destinations. Qurate Retail Group combines shopping and entertainment to curate products, experiences, conversations and communities for millions of highly discerning shoppers. Headquartered in West Chester, Pa., Qurate Retail Group has team members in the U.S., the U.K., Germany, Japan, Italy, Poland and China. For more information, visit qurateretailgroup.com or follow Qurate Retail Group on YouTube or LinkedIn.
Qurate Retail, Inc. (NASDAQ: QRTEA, QRTEB, QRTEP) is a Fortune 500 company that includes the Qurate Retail Group portfolio of brands as well as other minority interests.
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SOURCE Qurate Retail Group