Opinion: Will Majestic's plan be the toast of the City?

Majestic retail 4

Majestic Wine will unveil the details of a radical strategic plan next week as it aims to bottle higher volumes of online and overseas growth.

The booze specialist’s entrepreneurial boss Rowan Gormley has pre-warned the market of his plans to sell off the Majestic business in favour of focusing on the ecommerce operator he founded just over a decade ago, Naked Wines.

Despite the fillip of investment firm Gatemore Capital quietly snapping up shares over the past few months – an apparent show of confidence in that transformational strategy – the City has largely taken a ‘glass half empty’ stance to Majestic over the past year.

At the end of last June, its share price stood at 480p. At the time of writing, a slump in value that started following its interim results last November – when a £7.9m splurge on new customer acquisition at Naked tipped it into the red – had dragged the share price to 255p, leaving it with a market cap of just over £180m.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Three free article views per calendar month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.