Majestic Wine unveils corking new deal

CUSTOMERS of wine warehouse chain Majestic Wine will now have to buy only six bottles per visit after the group yesterday said it was halving the minimum purchase.

The decision follows a successful year-long trial in its Newcastle and Darlington stores, according to the group.

The firm hopes the policy will broaden its customer base – particularly in towns and cities, where people are more likely to walk to its stores instead of driving.

But it said the 12-bottle minimum will still apply to online orders.

Majestic said customer feedback from its trial had been “very positive”.

“Reducing the minimum purchase makes Majestic even more accessible to both current and new customers,” it added.

Investec analyst Natalia Marisova said the new minimum would widen the group’s appeal at “no detriment” to customers looking to buy 12 bottles or more.

She said: “With 49% of Majestic’s 400,000-plus active customers visiting only once a year, we believe there is significant scope for increasing the frequency of customer purchases.”

Altium’s David Stoddart said the decision would also appeal to customers living in smaller properties, although the average profitability of orders could fall.

The change of tack comes three months after Majestic’s annual profits more than halved, due to lower sales of champagne to recession-hit firms and a weak pound making European wines more expensive to buy.

While like-for-like sales rose 2% in the 10 weeks to the beginning of June, the group’s prospects hinge on this year’s festive period.