Majestic sales lose their fizz

Published: 10 November, 2008

Majestic Wine, owner of the UK's largest chain of wine warehouses, has admitted that it is facing a "challenging" Christmas sales period after like-for-like sales dropped 2.1% in the six months to the end of September.

The sales slump accelerated even faster in the following five weeks, with sales at its UK stores, excluding new openings, falling by 4.7% between the end of September and November 4.

In the six months to the end of September, profits before tax fell 25.5% to £5.6 million, with champagne sales falling by 6.4%. Majestic said that weaker demand was most evident from restaurants and other business customers.

Majestic's chief executive, Steve Lewis, said: "I think that customers have not had a lot to celebrate over the past six months and business customers have not been doing as much entertaining.

"When times are tough people don't want to be seen drinking champagne as much."

On a more positive note, the company said that sales to private customers had increased by 2.9% and that sales of still wine costing more than £20 a bottle grew by 10.7% in the six months to the end of September.

Lewis said that Majestic has introduced 60 new products in the run up to Christmas, including more top end sparkling wines. He added that 22 stores were now also offering free two-hour 'Introduction To Wine' sessions in an attempt to attract more customers. The scheme will be rolled out to all stores by next March.

Lewis said that the company would focus on wines from Chile, New Zealand and Bordeaux over the Christmas period.

Printer friendly version