The chief executive of Majestic Wine is hoping for a summer of sunshine and plenty of medals for British athletes at the Olympics to boost its sales.
Steve Lewis made his comments as the wine warehouse specialist toasted record full-year profits and a sparkling 20% rise in its full-year dividend.
While the current UEFA Euro football tournament “neither helps nor hinders” its sales, Majestic enjoyed a “very strong” two weeks leading up to, and including, the Diamond Jubilee. Lewis was also upbeat about the impact of a successful Olympics for Team GB.
“If the sun shines and we start winning medals, I think the British will go out and celebrate [by buying wine and champagne].”
Majestic grew group profits by 14.5% to £23.2 million over the 53 weeks to April 2, driven by an uplift in customer numbers and a £2 rise in average spend per transaction to £128.
The 181-store chain has not looked back since it reduced its minimum-purchase policy from 12 bottles to
six in September 2009 to make it more accessible to cash-strapped consumers.
Majestic last week introduced the same policy for online orders, for which it provides free delivery nationwide.
Despite the double-dip recession, the retailer posted a 18.5% spike in sales of fine wine at £20 or above last year.
Lewis said that this was partly due to it increasing its fine wine offer to 80% of its stores, adding they will be rolled out to all its shops over the next 12 months. He added: “It is about people treating themselves at home.”
While Majestic saw bubbly and wine fly off the shelves in the build-up to the Jubilee, its sales slowed “immediately” after the celebrations and are only up by 0.6% over the 10 weeks to 11 June. This compares to 2.6% growth last year.
Majestic, which wants to grow to 330 stores over the next decade, lifted its total dividend by 20% to 15.6p.
The group’s six-store operation in France grew profits to £1.4 million.
