Naked Wines to take on new customers again

After suspending orders on 17 March in the UK, online retailer Naked Wines has said it has now reopened its channels to new customers.

The retailer said that new customers could now order wine from its website, as well as its existing customers, who are known as Angels.

In a trading update, Naked said that its staff in the UK, US and Australia have been working remotely since 17 March. It reports that harvest and wine production for its partners have been “largely unaffected” by the coronavirus as most governments have allowed such processes to continue.

The retailer said, however, that due to “increased demand” it was operating extended delivery times in all markets.

In the UK, it said it was offering a “reduced range” in order “to enable worker separation and sustain warehouse throughput”. As a result, the company has been prioritising orders from repeat customers.

Naked now believes it has “adequate stock availability” with additional wine moving through the supply chain.

Since social distancing measures were implemented, the retailer said it has seen a surge in demand, particularly in the US. It predicts revenue in FY2020 will be over £200 million, up from £198.9m in the year to 31 March 2020.

The company describes the future trading dynamics as “very uncertain” but said that it is “very well placed” to respond to the crisis and growing demand for online delivery.

Naked works with over 200 winemakers and stocks over 1,000 wines from 17 countries.

Nick Devlin, group chief executive, commented: “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.

“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.”

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