// Naked Wines reports increase in wine orders during lockdown
// It expects 40% growth in total sales this year
Naked Wines has experienced a huge boost in wine orders during the coronavirus lockdown, and expects total sales in July to be up 73 per cent compared to last year thanks to strong rates of new customer growth.
The online alcohol retailer also said it expected a 40 per cent growth in total sales this year under its central performance scenario.
Naked Wines said chairman John Walden would step down following its AGM, and will be succeeded by Ian Harding.
The retailer saw its sales during the first four months of the financial year rise by 76 per cent thanks to a 185 per cent rise in new customer sales.
While significant uncertainty remains for the remainder of the year around the ongoing response to Covid-19 and the resultant macro-economic challenges, Naked Wine has reviewed potential scenarios for the group’s performance this year.
“Our central case assumes that we see the heightened levels of new customers and repeat purchase frequency reduce over summer, entering peak trading with an increased customer base and more normalised trading patterns for each customer,” Naked Wines said.
Chief executive Nick Devlin said: “I’m pleased to report continued strong rates of new customer growth and particularly strong repeat trading momentum as we see evidence of new customers recruited during the Covid-19 pandemic converting to repeat customers.
“I’m especially grateful for the incredible work of our teams around the world who have enabled us to deliver this step change in performance under challenging operating conditions.
“The evidence we are seeing across our markets is consistent with our view that Covid-19 has served as an inflection point for the online wine market, with Naked uniquely placed to benefit from that.
“We have the balance sheet strength and operational agility to enable Naked to continue to focus on ways to accelerate growth and take advantage of the opportunities presented by the new and evolving consumer landscape.”