Majestic hit by falling wine sales
Falling champagne sales to nervous bosses dealt a further blow to Majestic Wines today.
The UK's biggest wine warehouse chain said like-for-like sales slid 2.9 per cent in the 10 weeks to 5 January - compared with 1.2 per cent growth during the run-up to Christmas in 2007.
Chief executive Steve Lewis said: "Sales to businesses, especially of champagne, were down on last year as they continued to rein in their spending."
Demand for champagne was hit as corporate events in the City of London were cut back during the festive season - while businesses' gifts to clients tended to be cheaper still wines rather than bubbly, Mr Lewis said.
"Every business needs to cut costs and be seen to cut costs," he added.
Despite the fall-off in business custom, the group however saw "modest growth" in private sales as it held its own against larger rivals.
"We set up our business to expect a very tough Christmas and we are quite encouraged with the result. Despite fierce competition from supermarkets, sales from private customers came in very well," Mr Lewis said.
Altium Securities analyst David Stoddart said the sales decline matched his forecasts of a 3 per cent fall in sales for Majestic during the second half of the year.
"UK performance is therefore broadly in line with our expectations," he said.
Majestic has 147 outlets in the UK and around 850 staff, selling wines and spirits with a minimum purchase of 12 bottles a time.
Majestic was founded in 1981 with just a single store in Wood Green, north London. The store could only open all day by selling a minimum 12 bottles at a time under the-then licensing regime.
The group was floated on the stock market in 1996 and launched in France in 2001.
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 The response to my Pizza Express review has been overwhelming, and taught me a lot about journalism
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...