Vintage year at Majestic
Majestic Wine showed today that its strategy of being as different as possible from the supermarket giants some say are ruining the trade is working.
Chief executive Steve Lewis has focused on hiring more and better-trained staff and plans to open another 100 stores, taking the total to 250.
In the half year to the end of September sales were up £12.6 million to £106.7 million. Profit rose 9% to £6.1 million.
But Lewis doesn't expect to gain from the demise of Threshers and Wine Rack, which both recently collapsed into administration.
"It is sad to see any part of the industry struggling, but those problems go back a long way.
"The High Street off licence sector is not a place we want to be," he said.
The fall in the pound against the euro has made wines from Europe expensive, so Lewis has been pushing wines from New Zealand, South Africa and Chile.
"We have really focused on wines where the value is. Customers are prepared to spend, you've just got to give them really compelling value," he said.
Majestic lately cut the minimum spend at the stores to six bottles, down from 12, to widen its appeal.
The average bottle of wine sold at Majestic went for £6.41, up from £6.19 a year ago. The increase in sales of fine wines above £20 — up 14% — suggests the good times are back, for some at least.
The shares added 9p to 251p.
