Majestic buoyed by demand for wine

Wine warehouse chain Majestic today said half-year profits increased 17% after the business continued to benefit from a surge in demand for fine wine.

Average spend per transaction lifted £6 (€8.9) to £121(€179.9) as sales of wines priced at £20 (€29.7) and above increased by a third on last year – adding to the 30% increase reported for the previous financial year.

The group, which has 133 stores – eight more than a year earlier – posted profits of £6.5m (€9.6m) after total sales rose by £7.5m (€11.1m) to £88.3m (€131.3m) in the 26 weeks to September 26.

Like-for-like sales showed a rise of 6.2% in the period, before slowing to growth of 4.3% in the subsequent five-week period to October 30.

Chief executive Tim How said good progress had been made with store openings, following the launch of new sites at Bicester, East Molesey and Cheam.

A store opened at Leamington Spa in September, followed by two more this month at Lincoln and Huddersfield. In the first half of next year, Majestic said it planned to open new stores at Dulwich, Aberdeen, Colchester and near Reading.

Mr How added: “I am very pleased with our first half performance and the rate of new store openings."