Virgin Wines has predicted shoppers will host more social gatherings at home instead of going to pubs as the cost of living crisis bites.

In its annual report, the online wine retailer stated that it was “conscious” of the potential impact of budget cuts.

Profits before tax increased to £5.1 million in the year to July 2022, up from £1.7 million the previous year, as the company added 105000 new customers, 5 percent more than expected.

READ MORE: LIDL TO TRIAL ON SHELF SMART REFILLS TO HELP CUSTOMERS SAVE MONEY

Group revenue fell from £73.6 million to £69.2 million year on year which is still 63 percent higher than pre-pandemic levels three years ago.

READ MORE: PRIMARK HINTS AT JOB LOSSES AS CUSTOMERS HOLD BACK ON SPENDING

Virgin Wines chief executive Jay Wright said: “Despite widely documented macroeconomic challenges and consumer uncertainty, Virgin Wines has continued to show its resilience and strong positioning in the direct-to-consumer online wine retail sector.

“Our business model and disciplined approach to new customer acquisitions have enabled us to retain much of the substantial growth achieved during the Covid-19 lockdowns, with almost one million cases sold in FY22, and we remain market-leading both in terms of our customer proposition and our profitability.”

Need Career Advice? Get employment skills advice at all levels of your career

Virgin Wines provided an update on recent trading, stating that a strong August was followed by a weak September.

This is due to the national period of mourning following Her Majesty the Queen’s death.

Wright said: “We remain confident in the fundamentals of our business, with our emphasis on commercial opportunities through new and expanded strategic partnerships already delivering significant benefits. Our focus on high-quality, exclusive wines and award-winning service to our loyal customers will continue to be our key priority.”

Source: Retail Gazette

Follow us on YouTubeTwitterLinkedIn, and Facebook.