Majestic sales rise despite weather

Majestic Wine said it had defied the pre-Christmas snow thanks to a surplus of stock in stores and the determination of shoppers.

The group reported like-for-like sales growth of 3.7% in the nine weeks to January 3 as it kept stores trading throughout the adverse weather.

Majestic, which is based largely in out-of-town locations, said the weather conditions knocked around 1.5% to 2% off sales growth as customers found it difficult travelling to stores due to the snow and ice.

Sales during what is traditionally its busiest day – the Saturday before Christmas – were around half the normal level.

But chief executive Steve Lewis said customers battled through the “dreadful” December weather to buy their festive booze in between the snowfalls.

He added that with an average of 12 weeks’ stock held, even the worst affected outlets were able to keep trading despite delivery difficulties.

“We had a very stretched-out Christmas this year,” said Mr Lewis. “The final four days before Christmas were huge for us and it was busier than normal between Christmas and New Year.”

Total sales during the nine-week period were 6.4% higher, reflecting the addition of six new stores over the current financial year.

Majestic, which has 160 shops, aims to open at least another 12 in the next financial year starting in March. The group has been enjoying robust sales growth since cutting its minimum order from 12 bottles to six in September 2009. Comparable sales during the half-year rose 7.6%, while interim pre-tax profits increased by 20% to £7.3 million.

The group is absorbing the VAT hike to 20% throughout January, which is its slowest month by turnover, and Mr Lewis was upbeat over the group’s outlook despite the duty blow.