High street off-licences have no future unless they're located in wealthy parts of London or affluent market towns, the MD of Majestic Wine has claimed.

Steve Lewis delivered the gloomy prognosis as wine warehouse Majestic revealed plans to double its store estate to 330 on the back of strong sales and profits growth.

The collapse of Oddbins this year was just the latest evidence of the continued demise of the high street off-licence, which began in the 1980s, he said.

"I think there will always be room for small, specialist, owner-operated merchants in affluent areas of London and market towns but that's it," he said.

Majestic was able to avoid the problems faced by high street players partly because it eschewed town centre locations. "We don't want to operate on the high street because the rents are too high and we need dedicated on-site parking," he said. Majestic planned to expand gradually over the next 10 years, he added. "It's because finding sites takes time and not because of cashflow we can fund the growth entirely ourselves."

Majestic this week reported a 26.6% increase in pre-tax profits to £20.3m on sales up 10.3% to £257.3m for the year to 28 March. Its market share in wine grew from 3.4% to 3.6% and its bottles retailed at £6.94 on average, compared with a UK average of £4.60.

"That's where we are able to grow alongside the supermarkets and have a 10% market share," he said.