The wine warehouse merchant revealed pre-tax profits for the last financial year have topped £23.2 million, almost £3 million more than the previous year. Total sales were up nearly 9 percent, with like-for-like retail sales in the UK also rising by 2.6 percent, boosted by a growing number of bottles of wine at £20 or more being sold.
Also helping to raise sales were the 16 new stores opened by the company in the last 12 months, bringing the total to 181 UK-wide, with a further 150 planned for the future. Additionally proving decisive was Majestic’s decision to reduce the minimum order by half from 12 to six, both in-store and online.
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Commenting on the news, Chief Executive of Majestic, Steve Lewis, said:
“What has been going on for about the last 18 months is consumers are behaving in an entirely logical way. When they have got a really strong reason to spend – take the Royal Wedding last year – they’ve got good weather, an extra bank holiday, people really came out in their droves.”
“Majestic has a clearly differentiating operating model, with a focus on delivering exceptional customer service that has proved resilient in a challenging economic environment. We expect to make further good progress by continuing to invest in the development of internal talent, in the roll-out of the store portfolio and in customer facing technologies. ”
With the news that the country is facing more economic uncertainty in the near future, Majestic Chairman, Phil Wrigley, also remains optimistic:
“Whilst we recognise that the trading environment is likely to continue to be difficult we are well placed to deal with the challenges and opportunities ahead.”
Already this financial year Majestic has experienced UK like-for-like sales growth of 0.6 percent from 3 April to 11 June 2012, indicating current strategies are leading the way forward.