Majestic raises a glass to pre-Christmas sales despite snow

The group yesterday reported like-for-like sales growth of 3.7 per cent in the nine weeks to 3 January as it kept stores trading throughout the adverse weather.

Majestic, which is based largely in out-of-town locations, said the weather conditions knocked around 1.5 per cent to 2 per cent off sales growth as customers found it difficult travelling to stores due to the snow and ice.

Sales during what is traditionally its busiest day - the Saturday before Christmas - were around half the normal level.

But chief executive Steve Lewis said customers battled through the "dreadful" December weather to buy their festive booze in between the snowfalls.

He added that with an average of 12 weeks stock held, even the worst affected outlets were able to keep trading despite delivery difficulties.

"We had a very stretched out Christmas this year," noted Lewis.

"The final four days before Christmas were huge for us and it was busier than normal between Christmas and New Year."

Total sales during the nine-week period were 6.4 per cent higher, reflecting the addition of six stores over the current financial year.

Majestic, which has 160 shops, including 11 in Scotland, aims to open at least another 12 in the next financial year starting in March.

The group has been enjoying robust sales growth since cutting its minimum order from 12 bottles to six in September 2009.

Comparable sales during the half-year rose 7.6 per cent, while interim pre-tax profits increased by 20 per cent to 7.3 million.

The group is absorbing the VAT hike to 20 per cent throughout January, which is its slowest month by turnover, and Lewis was upbeat over the group's outlook despite the duty blow.

Analysts at stockbroker Numis Securities described the Christmas performance as "creditable" against the previous year's tough sales comparison, when it notched up growth of 11.7 per cent. Shares in Majestic ended 4 per cent higher at 399p.