// Naked Wines to see an excess of £200m in full-year 2020 revenues
// The rise is due to the coronavirus lockdown increasing demand
// High levels of demand recorded from both new and repeated customers
Naked Wines has forecast a £200 million rise in its full-year 2020 revenues thanks to the coronavirus lockdown resulting in increased demand.
The online alcohol retailer said it had seen “higher levels of demand from both new and repeat customers” in all of its markets, particularly the US.
It has invested “aggressively” in new customer recruitment and expects its investment for the year to be towards the middle of the £20 million to £25 million range.
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Despite the increase in purchases, Naked Wines said trading remains “very uncertain” as it delayed its updated guidance.
Meanwhile, office staff in the UK, the US and Australia have been working remotely since March 17.
“During this unprecedented time, our absolute priority is the safety and wellbeing of our staff, customers, suppliers and winemakers and we have implemented necessary safeguarding measures in line with government advice in each of our markets,” Naked Wines chief executive Nick Devlin said.
“I am deeply proud of the way our teams have responded to the challenge of adapting to a new way of working in light of Covid-19 and their commitment to serving our customers.
“To the extent it’s safe to do so we are working hard to continue to connect wine drinkers with world-class independent winemakers and bring a moment of normality and enjoyment into their homes without necessitating a visit to a store.
“In the short term, the introduction of social distancing has accelerated the shift in consumer buying behaviour towards online, leading to increased demand from both new and existing customers across all our markets.
“In the US, especially, I believe the current period could serve as an inflection point for the growth rate of the online category, and as the largest direct to consumer player in the US market we are well-positioned as customers move online.
“Over the medium-term, Covid-19 and its economic impact clearly creates uncertainty. However, Naked, with its advantaged consumer proposition and strong balance sheet, is well placed to meet the challenges of a changing consumer environment.”
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