Majestic celebrates profit surge
Wine retailer Majestic Wine has announced that group profit before grew 26.6% to Â£20.3 million in the year to 28 March.
Total sales increased by 10.3% to £257.3 million and like-for-like sales in UK retail stores rose 5.3%. In the ten weeks from 29 March to 6 June 2011, UK like-for-like sales were up 4.4%.
The retailer said that it had benefitted from the policy introduced in 2009 to reduce the minimum purchase requirement to six bottles from twelve. This helped to grow the number of customers making purchases in the last twelve months by 8.2% to 511,000.
Average spend per transaction declined by 2.5% to £126 but there was strong growth in transaction numbers, up 12.5% to 2 million. The price of an average bottle of wine purchased by a Majestic customer was £6.94 up from £6.56 in the previous year, the retailer said.
Online sales increased 9.6% on last year and now represent 10.2% of UK retail sales. Majestic Commercial saw sales to business customers grow 17.2% on last year and now represent 24.2% of total UK sales.
Sales of fine wine, priced at £20 per bottle and above, increased by 23.7% on last year, representing 6% of UK store sales.
Majestic currently has 165 UK stores and, following a detailed mapping exercise, said it was confident of being able to expand to at least 330 stores.
Steve Lewis, CEO, said: "We are delighted that so many new customers have chosen to shop with Majestic and are encouraged that all parts of the business are showing strong progress."
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