Subscriber login Close [x]
remember me
You are not logged in.

Majestic to double store numbers

Published:  13 June, 2011

High street wine retailer Majestic is set to double the number of its stores to 330 within the next few years.

High street wine retailer Majestic is set to double the number of its stores to 330 within the next few years.


The news about the rapid expansion was revealed today with Majestic's annual results, which saw profits before tax up 26.6% to £20.3 million, and total sales up 10.3% to £257.3 million.


The retailer puts the growth down to an increase in customer numbers (up 8.2% to 511,000) and an increase in the average price per bottle of wine (now £6.94, up 38p on 2010).


Sales to business customers were up 17.2% on last year and represent 24.2% of total UK sales, while sales of fine wine, priced at £20 and over, increased by 23.7% and now makes up 6% of UK store sales.

Chief executive Steve Lewis said: "It was becoming increasingly apparent that the reduction in our minimum purchase requirement has widened our customer demographic. Consequently we commissioned a detailed research project mapping our current store portfolio and changed customer demographic against the UK population as a whole. The project has recently concluded and we are confident of being able to expand Majestic to an estate of at least 330 stores."


The Lay & Wheeler business, bought for £6 million in 2009, made a profit before tax of £701,000, compared to £23,000 in 2010. Lewis recently told Harpers: "It took us 18 months to sort Lay & Wheeler out, and now's the time to put the foot down."


Chairman Phil Wrigley said: "While we recognise that market conditions continue to be challenging, we are encouraged to have achieved UK like for like sales growth of 4.4% in the first 10 weeks of the new financial year, from 29 March to 6 June 2011."

Keywords: