Majestic defies snow with strong Christmas sales

Wine specialist Majestic has defied the grim December weather, posting a healthy 3.7% rise in like-for-like sales over Christmas.

At a time when many retailers’ trading performances were hampered by the icy conditions across the UK, Majestic’s sales grew over the festive period, with total UK sales, excluding VAT, up 6.4% in the nine weeks to 3 January thanks to a surplus of stock in stores and the determination of Christmas shoppers.

“We were trading well into Christmas. Then the north got hit by snow, and then the south, but there were always people in some parts of the country able to get to us”, Majestic’s chief executive Steve Lewis told the drinks business.

"The final four days before Christmas were huge for us and it was busier than normal between Christmas and New Year”, Lewis added.

Lewis’ decision in September 2009 to cut the minimum purchase from 12 bottles to six has been pivotal to the company’s recent success.

“It’s been hugely influential. It has made us much more accessible and we’ve gained a huge amount of new customers off the back of it. It has also made it easier for our regular customers to buy from us more frequently," Lewis said.

What other factors are driving Majestic’s sales, and contributing to its impressive growth record? “We’re a compelling proposition," he said. "The secret to our success? Competitive pricing, clued up staff and good customer service.”

In November last year, Majestic reported that pre-tax profits were up 20% to £7.3 million. The company, which is absorbing the VAT hike to 20% throughout January, now has 505,000 customers, up 14% on a year ago.

Lewis added: “We’d planned to absorb the VAT hike for some time. We’ve had a good Christmas and can afford it, so why not?”

Majestic operates 160 shops, and aims to open at least another 12 in the next year, starting with Yeovil in Somerset, in February.

Extensive recruitment across the stores is planned for 2011, along with a focus on e-commerce.

Lucy Shaw, 10.01.2011