Woolworths is contemplating increasing the number of its stores under licence following the success of its £5 Champagne.

The retailer launched the wine under its budget Worthit! brand last week as the cheapest Champagne in the UK. Despite a one-per-customer rule, the company expects to have run out of its stock of 3,000 bottles by the beginning of next week and is in talks with its supplier to try and source more for the Christmas period.

The Champagne is only available in 15 out-of-town Woolworths stores that are licensed to sell alcohol but a spokeswoman said the company was looking at increasing that number.

"We are now discussing the possibility of expanding the number of stores that sell alcohol and are committed to maintaining the licences of these 15," she said. "We are not, however, looking at moving into any other alcohol categories at the moment."

Woolworths said it had chosen to stock Champagne as it was an unlikely item to be associated with its value range. Customer research had identified demand for Champagne at a low price.

"The survey showed that shoppers on a tight budget still want luxury items," said MD Tony Page. "We are not pretending to be wine experts but our supplier is and it has sourced a good Champagne at the right price."

Morrisons and Tesco, who sell Champagne for about £10, said they would not be reducing their prices as a result of the launch.