Majestic Wines cuts new stores as H1 profits drop

Most popular

Consumers need help in making healthier choices

Can 'community commerce' solve DTC woes?

Aged spirits in 2021 - just-drinks predicts

Interview - William Grant senior category director

Kumquat & Stracciatella? - 2021's flavour trends

  • H1 net profits down 72% to GBP1.8m (US$2.7m)
  • Net sales up 36% to GBP181.6m
  • Store projections lowered from 330 to 230

Majestic Wines is to scale back store openings after its first-half profits plummeted.

The UK wine retailer said yesterday it plans to have 230 outlets in three years time instead of 330. It currently has 211 stores.

The move, part of a revised three-year plan, comes after net profits in the 26 weeks to 28 September fell 72% to GBP1.8m (US$2.7m). Sales, however, were up 36% to GBP181.6m, boosted by Majestic's GBP70m purchase of online wine retailer Naked Wines in April. Excluding the Naked Wines buy, sales were up 6%.

Underlying performance for the group was better, with adjusted EBIT excluding Naked Wines rising by 6%.

Rowan Gormley, Majestic's CEO and former head of Naked Wines, said: "Six months in to my new job it is clear to me that we have a solid core business at Majestic, and two great growth engines in Naked and our commercial business. We have a clear plan, which will require investment and take three years to complete, but will also deliver a better business that can create sustained growth in shareholder value."

Majestic's new three-year plan also includes:

  • Targeting more than GBP500m in sales for fiscal 2019, compared to GBP278.2m last fiscal year
  • A change of emphasis from opening new stores to new customer recruitment
  • Expanding Naked Wines in the UK, US and Australia

Yesterday, the Guardian reported that Majestic had replaced its head buyer Justin Apthorp. Apthorp was in charge of buying last year when Majestic came under fire from suppliers, who accused it of demanding payments to help fund a new warehouse. The former buyer remains with Majestic as a non-executive director, the Guardian said.

Majestic's share price dropped after it released its results yesterday morning in London. However, the stock has since rallied and as of 1140 GMT was up 8% on Friday's closing price.

To read the company's full results, click here.

Related Content

Majestic Wine to sell stores, retail arm to investment fund for US$115m

Majestic Wine to sell stores, retail arm to investment fund for US$115m...

Naked Wines names new CEO as Rowan Gormley steps down

Naked Wines names new CEO as Rowan Gormley steps down...

Majestic Wine

Majestic Wine "open to any permutation" of retail offload - CEO...

Majestic plans store closures, eyes rebrand to Naked Wines

Majestic plans store closures, eyes rebrand to Naked Wines...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?