Majestic drinks a toast to fizzing profits in a fast-growing market

Majestic Wine's bosses have broken out the champagne to celebrate a 27.4 per cent preliminary earnings hike.

The store group toasted profits ofÂŁ10.6 million - up fromÂŁ8.3 million last year - on sales that fizzed up 18 per cent toÂŁ148.3 million.

Majestic chief executive Tim How has plans to open 60 more shops over the next seven year, taking store numbers to 175.

'I think 175 stores nationally is a realistic target for us at the moment,' said How.

'The market is getting bigger, because more people are drinking wine and are beginning to drink a greater range. Wine is the fastest-growing part of the drinks market.'

At present, Majestic controls 3 per cent of the UK wine market, which is growing at about 6 per cent a year.

Because the retailer sells wine by the case only, its average spend per transac-tion isÂŁ107.'The reason why we enjoy such high figures is that we are selling specifically to wine enthusiasts,' explained How.

- Leader: page 11.

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