More online advertising and promotional partnerships with the likes of Charles Tyrwhitt and Hotel Chocolat are firmly on the agenda for Majestic Wine which is investing significantly in new customer acquisition for both its Naked Wines and Majestic Wine brands. CEO Rowan Gormley has warned investors that the investment, of between £9m – £12m this year will impact profits by around £3m in this current trading year but that this will be recouped over time. The business already invests around £12m a year in customer recruitment and says that new insight shows there is a greater than expected opportunity to attract new profitable customers who seek quality wines at a good price rather than poor quality cheap wines.
Rowan Gormley said “We are in the fortunate position to accelerate growth by investing in new customer acquisition. In the last three years, we have doubled sales at Naked Wines and delivered profitability in all three markets, after increasing investment in new customer acquisition. We believe we can double the level of investment again while maintaining the returns, driving sustained growth in shareholder value. On a risk/return basis, the case for accelerating investment is clear. We can measure success in months while delivering return over years.”
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