The economic crisis has taken its toll on Majestic Wine. Although sales for the year to 30 March were up 2.4% to £201.8m, pre-tax profits collapsed by 55.8% to £7.4m.

Chief executive Steve Lewis said although sales to private customers had held up well, trading with UK corporate customers had been poor.

The retailer’s overseas business had also been hit hard as the strength of the Euro put off UK from travelling.

“The resilience of our core consumer business is encouraging,” said Lewis. “Our market share has held steady and we are confident that Majestic is well positioned to benefit from any upturn in the economy.”

Like-for-like sales for the 10 weeks from 31 March to 8 June were up by 2%.