Majestic reports strong Christmas sales

By Michelle Perrett

Published: 09 January, 2018

Majestic Wine saw bumper trading over the Christmas period with group sales increasing by 3.2% compared to last year.

Covering the 10-week Christmas trading period ending 1 January 2018, the retailer also saw sales on an underlying basis increase by 4.1%.

The group delivers c.30% of total annual sales during the Christmas trading period, it revealed.

It said that Majestic Retail delivered a “good result” with sales up 1.2% (1.3% like-for-like) versus comparatives of 6.2% (7.5% like-for-like) last year.

The fact that Majestic had been able to grow sales and maintain margins showed its winning formula of “fabulous customer service from delightful people and delicious wines at fair prices” worked even when times were tough, said chief executive, Rowan Gormley.

“We are on track to achieve our £500m sales goal by 2019, on track to deliver market expectations for the current financial year, and on track to accelerate investment in new customers, new winemakers and more fantastic wines.”

Its Naked Wines division saw overall sales up 13% with the UK division seeing an increase of 7.4%. Its Lay & Wheeler division saw sales drop 4.7%, while Majestic Commercial fell by -4.6%.

Majestic revealed that premium English sparkling wine sales were booming. Highlights at Majestic were Nyetimber +58% and Chapel Down +36%. At Naked Wines, English Wine sales were up 150% year on year. Its Naked Wines division sold 9.5 bottles of Prosecco for every bottle of Champagne sold over Christmas.

Southern French white wine grew by 49% versus last year, driven by people looking for alternatives to more expensive Chablis and Rhone, it said. Rosé sales were also up by 14% driven by Provençal styles.

Magnum sales were up 62% with rosés and house reds in 1.5 litre measures particularly popular and Eastern European wine sales grew 190%. Sherry also proved a popular choice over the festive period with sales up 14%.

Majestic Wine also announced that Joshua Lincoln has been appointed retail & managing director of Majestic Retail with immediate effect. He has been customer director at Majestic Retail since 2016.

Martin Lane, managing editor of www.money.co.uk, said: "Staying in is definitely the new going out with pub sales in serious decline in 2017. Majestic Wine have cashed in on the trend, widening their appeal - moving away from their old wholesale-style business with better looking stores, wine tasting and the ability to buy bottles in any quantities.”

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