Majestic Wine has posted a double-digit hike in profits, as the retailer continues on its store expansion plan.
Profits increased by 14.5% to £23.2m in the 53 weeks to 2 April 2012. Sales grew by 8.9% to £280.3m with like-for-likes in UK stores up 2.6%.
Majestic opened a record sixteen new stores in the financial year and has opened a further three since, bringing its total UK store estate to 181. The company plans to expand to 330 stores in the UK.
The number of customers who have made purchases in the last 12 months grew by 11.1% to 568,000 while the average price of a bottle of wine sold was £7.34, up from £6.94.
Sales to business customers grew 6.9% to represent almost a quarter (24%) of UK sales. Its three stores in France – which guarantee to be £2 per bottle cheaper than the UK - contributed £1.4m towards pre-tax profits.
Last week Majestic announced it was lowering its minimum online order from 12 bottles to six. Online sales increased 7.8% and now represent 10% of UK retail sales.
“Majestic has a clearly differentiated operating model, with a focus on delivering exceptional customer service that has proved resilient in a challenging economic environment,” said chief executive Steve Lewis.