Majestic profits up 4.2% in first half
Majestic Wine increased its profits by 4.2% in the first half of its financial year as it continued to invest in new stores and technology.
In the 26 weeks to 30 September, pre-tax profit grew to £9.5 million from £9.2 million a year earlier. Total revenues rose by 3.3% to £130.2 million.
Across the six month period, like-for-like sales edged down 0.4% after being impacted by the timing of Easter this year and comparatives with last year’s Jubilee celebrations. However, there was an improvement in the seventeen weeks from 4 June when like-for-like sales grew by 3%.
Majestic opened three new stores in the first half and three after the end of September to bring total number of shops to 198. By the end of November, the retailer will have opened two further stores in Lewes and in Petersfield.
Never Miss a Retail Update!During the period, Majestic increased its number of active customers by 6.2% to 631,000. The average spend per transaction at the retailer’s stores also increased, rising by £1 to £127 with the average bottle price of still wine purchased at Majestic is £7.71 up from £7.46 last year.
Online sales climbed by 8.3% and now represent 10.3% of UK retail sales following the launch of Majestic’s new web platform with its improved click and collect functionality.
Majestic chairman Phil Wrigley said: “Our ongoing investment in new stores, consumer facing technologies and development of our people has continued to attract considerable numbers of new customers. Majestic has a clear strategy to deliver growth from the expansion of the store estate, increasing revenue from business customers, growing e-commerce transactions and developing sales of fine wine.”
Chief executive Steve Lewis added: “These results show we continue to make steady progress towards our strategic growth objectives and we are very well prepared for the peak Christmas trading period.”
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