Majestic lifted by demand for wine in the UK

Wine warehouse chain Majestic crowned a sparkling set of annual results today by revealing further strong sales in its new financial year.

Majestic, which has 136 stores in the UK, reported pre-tax profits of £16.2m (€24m), up 14.1% on a year earlier and stronger than City forecasts.

The company said like-for-like sales since April were up 4.9% – the same as the previous year and despite signs from elsewhere that consumers have been tightening their belts because of higher

borrowing costs.

The price of the average bottle of wine purchased at Majestic is now £5.75 (€8.54), while the average spend per transaction has increased to £123 (€183) from £118 (€175) a year earlier.

Majestic chief executive Tim How said the company continued to see a trend for customers to purchase higher quality wines.

Sales of fine wine – still wine priced at £20 (€20.70) and above – increased 25% and now accounts for 3.6% of UK retail sales. There are currently 28 stores with dedicated fine wine sales areas and by Christmas Majestic expects to have extended this to 40.

Mr How added: “We believe that prospects for the future growth of Majestic are good.”

Sales growth was particularly strong in wines from Bordeaux, Loire, Spain, New Zealand, Chile and Argentina. Sales of Champagne and rose wine also continued to show good growth.

Majestic opened in eight new locations during the last financial year in East Molesey, Bicester, Cheam, Leamington Spa, Lincoln, Huddersfield, Dulwich and Colchester. In addition, it re-sited stores in Cardiff, Tunbridge Wells and Sheffield.