Naked Wines US boosts Christmas sales at Majestic Wine

Sales at UK wine specialist Majestic grew over the Christmas period, driven by the strongest ever performance from Naked Wines, particularly in the US.

Sales across the group rose 6.3% during the retailer’s key Christmas season, which accounts for 30% of its annual sales, a welcome result after the company downgraded its expectations in November due to the sluggish UK retail market. The growth largely came on the back of a strong performance at Naked Wines, which saw growth of 15.9% compared to last year, boosted by a 21% increase in the US. US sales of Prosecco did particularly well, up 29.8% during the festivities, with Hungary, Bulgaria, Greece and Lebanon also up 58% overall.

Sales in the group’s retail wing rose 1.5% on the same period last year, boosted by a late surge in sales, which saw a 47% uplift in the week before Christmas, as shoppers waited later than usual to stock up.

There was also a slight increase in momentum from last year, which grew 1.2%, albeit 2019 was slower than the 6.2% growth two years ago.

The retailer reported more unusual regions had proved popular including wines from Eastern Europe, Greece and England, which saw sales up 65%. There was also a renewed interest in German and Austrian wines, up 99%, while Madeira also had an unexpectedly bump, up 20%.

There was also growth in Majestic’s Commercial arm of around 3.5%, and its fine wine business Lay & Wheeler, of 5.3%, a marked improvement on last year, which saw sales decline by 4.6% and 4.7% respectively.

Group chief executive Rowan Gormley said trading has been challenging over the Christmas period, but the trends reported in its November results remained the same – strong growth in overseas markets and Majestic’s digital propositions but headwinds for the UK Retail stores.

He reiterated his belief that consumer behaviour was changing and we are seeing “a revolution” in retail.

“We think there will be winners and losers, and we believe we have what it takes to be one of the winners. We are uniquely placed, with the people, data and skills in place to succeed despite the headwinds we are seeing,” he said.

“We look forward to setting out more of our future plans for the group, including the Retail business with our full year results in June.”

In November the company announced lowered its forecast on earnings before interest and tax (EBIT) for the 2018 financial year, revising expectations to be flat across the financial year, instead of seeing growth of £600k, due to the tough UK retail market.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Key Account Manager

MMI Maldives

Financial Controller

London City Bond
Barking, UK

Duty Manager

The Whisky Exchange
Great Portland Street, London

Spirits Advisor

The Whisky Exchange
London, UK

International Sales Manager

Elixir Distillers
Park Royal, London, UK

Brand Marketing Executive

Elixir Distillers
Park Royal, London, UK

Cellar Door Manager

House of Townend
Melton, North Ferriby, UK

Marketing Assistant

Bancroft Wines Ltd
London, UK

Marketing Manager

The Whisky Exchange
Whitby Avenue, Park Royal, London NW10 7SF

Millésime Bio 2020

27th Jan 2020

Maisons Marques et Domaines Annual Tasting

London,United Kingdom
29th Jan 2020

Austrian Wine Tasting

London,United Kingdom
3rd Feb 2020
Click to view more