Top 14 UK retailers: multiple opportunities

10th October, 2016 by Arabella Mileham - This article is over multiple pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

14. Oddbins
Stores: 48 (30 in London, inc a dedicated beer store)
Buyers: Two
Range: c. 700 skus (30% refreshed each year) specialising in “under-represented” wines with a story
Average bottle price: £10
Volume wine sales: 2.3m bottles a year
Annual turnover: £14.1m

Oddbins

Enjoying a unique position in the market means customers expect Oddbins to be “a bit left-field” when it comes to its range, buyer Ana Sapungiu says – helping boost its average price to around £10.

Although top-sellers include “safe” wines (Prosecco and New Zealand Sauvignon Blanc,) what follows is less predictable, coming from across the breadth of the range and belying the retail truism that 30% of skus deliver 70% of sales.

“We sell from across the board, whether that is Portugal, Romania or Greece – but we’ve worked hard at that, as we don’t have price promotions which encourages people to look,” Sapungiu argues.

Around 30% of the 700-strong range is rotated through the year – sub-£25 Burgundies were boosted to bridge the gap between the generic blends and “unaffordable” top-tier, while Australia, Chile and Argentina have also been refreshed. Fine Wine has also grown after the range grew from 20 to 60 lines, to encompass wines beyond Bordeaux and Burgundy such as “daring” £30+ Portuguese wines, small parcels and magnums of German chardonnay.

Marketing concentrates on consumers engagement and “disruptive” campaigns (its visible Christmas Fox campaign punched above its weight) and the demographic is “evolving”, attracting an equal share of female customers. Although market share is small, last year saw sales up 13% on the previous year, and the retailer has long cherished ‘organic’ growth of the estate.

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