Majestic shoppers defied snow to get in Xmas wine

By THIS IS MONEY
Updated: 09:57 EST, 6 January 2011

Determined wine lovers battled through 'dreadful' December weather conditions in order to stock up this Christmas, according to Majestic Wine.

Sales rise: Business has grown since Majestic cut its minimum order from 12 bottles to six

The out-of-town retail chain reported a 3.7% rise in like-for-like sales in the nine weeks to January 3.

But it admitted the harsh weather knocked 1.5% to 2% off sales growth. And business during what is traditionally its busiest day - the Saturday before Christmas - was around half the normal level.

Chief executive Steve Lewis said 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 rose 7.6% while pre-tax profits increased by 20% to £7.3m during its first half to September 27 last year.

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

Analysts at Numis Securities described the Christmas performance as 'creditable' against last year's tough sales comparison, when Majestic notched up growth of 11.7%.