Littlewoods Finance: A Look at its History and Operations

Littlewoods, originally a mail-order and retail giant in the UK, also operated a significant finance arm. Understanding Littlewoods Finance requires acknowledging its role within the larger Littlewoods organization and its eventual transition in the financial services landscape.

Founded by John Moores in 1923, Littlewoods initially focused on football pools before expanding into mail-order catalogues. The mail-order business allowed customers to purchase goods on credit, effectively making Littlewoods a significant provider of consumer finance. This in-house credit facility was a key element of Littlewoods’ success. Customers could spread the cost of purchases over several weeks or months, making goods more accessible and affordable.

Over time, the finance operations of Littlewoods became more sophisticated. While initially tied directly to the catalogue business, Littlewoods Finance also offered other credit products, including personal loans and credit cards. This allowed them to tap into a broader market beyond just their mail-order customers. The company understood the importance of building strong customer relationships, and offering credit was a crucial part of that strategy.

Littlewoods Finance played a crucial role in fueling consumer spending and economic growth in the UK throughout the latter half of the 20th century. Its accessible credit options were particularly popular amongst working-class families, allowing them to acquire household goods and other items they might not have otherwise been able to afford. This fueled the growth of many other businesses that relied on consumer spending.

However, the rise of online retail and changing consumer preferences presented challenges to the traditional Littlewoods business model. The competition from online retailers with lower overheads and flexible payment options intensified. This ultimately led to significant changes in the company’s structure and ownership.

In 2002, Littlewoods was sold to the Barclay brothers. The retail division, including the shops and mail-order business, was sold to Shop Direct Group (now The Very Group). The subsequent fate of Littlewoods Finance is interwoven with the broader evolution of Shop Direct’s financial services offerings. While the specific brand “Littlewoods Finance” may no longer exist independently, the legacy of providing credit to facilitate consumer purchases continues under different branding within The Very Group’s financial services division. This division provides credit accounts and other financial products to support online purchases from Very.co.uk and other related brands.

In conclusion, Littlewoods Finance was a significant player in the UK consumer finance market, deeply embedded in the success of the Littlewoods mail-order business. While the original structure has evolved, its impact on consumer spending and the accessibility of credit in the UK remains a notable part of British commercial history. Its legacy continues in the financial services offered by The Very Group, demonstrating the enduring need for consumer credit within the retail landscape.