// Naked Wines posts annual sales growth of 68% thanks to a surge in orders
// The retailer benefited from an accelerated shift in consumer behaviour toward online wine purchases
// US business grew 75%, surpassing £150 million of sales
Naked Wines saw group sales soar by 68 per cent in the year ended March 29 after a strong performance particularly in the US.
The online alcohol retailer’s sales were better than expected, after initially being forecast to grow by no more than 65 per cent.
The growth was driven by a significant increase in demand for its direct-to-consumer wine subscription model, and from an accelerated shift in consumer behaviour toward online wine purchases due to the coronavirus pandemic.
READ MORE:
Naked Wines’ US business grew by more than 75 per cent, surpassing £150 million in transactions and representing almost half of group sales.
There were also increased levels of new customers, which came in 10 per cent above guidance.
Fixed costs were in line with expectations and the firm said it had enough cash to fund operations in 2022.
“Our significant growth is a testament to the customer demand for a disruptive online wine model that offers direct connection to the world’s top winemakers,” Naked Wines chief executive Nick Devlin said.
“Whilst in some ways 2021 is as difficult to predict as 2020, I believe we have seen an enduring shift of demand online across multiple categories.
“Ultimately whilst Covid has driven the trial of many online models, the long-term winners will be the businesses that offer customers a genuinely differentiated offer: I firmly believe Naked will be one of those long-term winners.”
Full details on Naked Wines’ fiscal year will be published in June.
Click here to sign up to Retail Gazette’s free daily email newsletter
