Fine wine boom boosts Majestic
Majestic's half-year profits have soared by 20% helped partly by an increasing consumer interest in fine wines.
Majestic's half-year profits have soared by 20% helped partly by an increasing consumer interest in fine wines.
The retailer's like-for-like sales increased by 7.6% and the company said sales of wine priced above £20 rose by 20%.
This price bracket now represents 5% of sales. There are fine wine areas in 96 Majestic stores and the company plans to roll these out to all 160 branches.
Pre-tax profits in the six months to September 27 rose to £7.3 million. Despite reducing the minimum order requirement to six bottles, average transaction values only dipped by 7% to £122.
Chairman Phil Wrigley said: "We have seen particularly strong growth in sales of wines from New Zealand, France, Italy and Spain. French wine is very important to Majestic and it is pleasing to note that sales have returned to growth driven by the classic regions of Bordeaux, Burgundy, Loire and the Rhône.
"Sales of sparkling wine grew well and we are encouraged that sales of Champagne also increased."
He added that online sales were up 8.3% and now represent 9.1% of the company's UK turnover.
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56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
