Majestic Wine said on Monday it would focus on its online wine retail business Naked Wines by releasing capital from its Retail and Commercial operations as Britain nears its exit from the European Union.
Majestic Wine, which bought Naked Wines in 2015, will invest an additional £6 million (€7 billion) per annum in the unit, taking the total to £26 million in full-year 2020.
The company has been struggling due to tough competition from discount supermarkets Aldi and Lidl UK, and online rivals offering cheaper wines.
‘Following the acquisition of Naked in April 2015, the Group embarked on a transformation plan to broaden our sales footprint outside of the UK, drive growth through investment in customer relationships and increase our digital capability,’ the group said in a statement.
‘As a result, we are now almost 45% online and over 20% international and have significant growth potential driven, in particular, by the US business. We are now moving towards the next phase of the Group's evolution in which we will tightly focus on the significant Naked growth opportunity.’