Wine retailer Majestic achieved robust trading performance over Christmas despite a fiercely competitive alcohol market.
The retailer reported a 1.9% increase in total sales during the six weeks to 30th December, beating its previous festive record set in 2023. Its performance was boosted by the opening of seven new stores last year and the strong growth of its on-trade supply arm, Majestic Commercial.
Majestic’s shops served more than 70,000 new customers for the first time during the period, helping it achieve its largest-ever market share, while its on-trade operation supplied almost 800 new bars, restaurants and hospitality venues compared to last Christmas.
Majestic registered the biggest trading day in its history on 23rd December, toppling the record it set last year, with it also seeing its busiest-ever Christmas Eve.
Sales of fine wine sales rose 4% during the period – building on last year’s 13% increase – as shoppers traded up for the festive season. Sales in the Christmas categories of champagne and sparkling climbed 4.7% and 5.3% respectively, while fortified wines were up 15%.
Majestic noted that the Christmas performance capped off another year of progress for the business, five years on from its separation from Naked Wines and acquisition by Fortress Investment Group.
CEO John Colley said: “It’s clear that, even when consumers’ budgets are tight, our market-leading product range, expert advice and differentiated service is a winning proposition – particularly at important times of year like Christmas.
“We are heading into what will be another challenging year for retail and hospitality businesses, with increases in the National Minimum Wage, Employer National Insurance Contributions and Alcohol Excise Duty all representing unhelpful headwinds. That said, we have plans in place to mitigate some of these and, with the strong backing of Fortress Investment Group, will continue to invest in growing our on-trade division and opening new Majestic stores – including exciting launches in Christchurch, Wimborne Minster and Rickmansworth.
“Whatever the next 12 months brings, our focus will remain on doing what Majestic does best – offering quality, unique products at the best possible prices, and helping even more customers discover new wines, beers and spirits they will love.”
NAM Implications:
- Key to establish the extent to which you achieved and maintained your fair share of Majestic’s sales and investment…
- …given the Autumn Budget tax increases due to impact in April.
