Virgin Wines has signed a lease for a new warehouse facility in Preston as the online wine retailer continues to invest in growth, despite citing a challenging consumer environment.
The AIM-listed company said the new site will support its long-term growth strategy while delivering operational efficiencies, economies of scale and lower transport costs by combining operations, which are currently split between facilities in Preston and Bolton.
The warehouse build and fit-out will be completed during FY27, with associated exceptional operating costs of around £0.7m and capital expenditure of approximately £1.6m.
Virgin Wines plans to exit its Bolton site by the end of February 2027, with all fulfilment operations moving to Preston.
The announcement came alongside a trading update in which the retailer said it expects revenue growth of around 4% in FY26, or a total of £61m, outperforming a UK online drinks market that has declined year on year.
The company added that it had experienced 40% growth in customer acquisition, boosted by new commercial partnerships and expansion into UK sports stadiums.
Partnerships with Moonpig and Ocado also continued to deliver double-digit revenue growth, while its Warehouse Wines proposition is expected to achieve revenue growth of 90% year on year.
“We are pleased to have agreed a lease for a new warehouse in Preston, streamlining our operations and providing significant synergies and economies of scale, all funded from our strong cash position,” said Virgin Wines chief executive officer Jay Wright.
“Our execution against the key pillars of our growth strategy is delivering encouraging progress, despite that growth now being slightly slower than our original plan due to external market pressures.
“We are evidencing that the strategy is working, and we remain focused on taking further market share and continuing to invest in our growth channels.
Wright added: “We have an exceptionally loyal customer base who appreciate the outstanding quality and value of our exclusive wine portfolio and the exceptional levels of customer service we consistently deliver. We look forward to pressing ahead with our growth strategy and delivering on our medium-term goals.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
