Profits flow for Majestic Wine
Halving the minimum number of bottles customers are required to buy from 12 to six has boosted sales for Majestic Wine, the off-license wine retailer.
The chain, which operates more than 150 stores across the UK, said like-for-like sales had risen more than eight per cent in the year to March 29, 2010, with the second half given a lift by the move to halve the minimum purchase requirement from twelve to six bottles.
"This change, which was implemented following extensive trials, has proved extremely popular with our existing customer base and has also made Majestic more accessible to new customers," the group said.
Excluding acquisitions, underlying profits rose 26 per cent to £16m.
The group, a division of which supplies the free-trade, said see increasing sales to business customers was an important part of its future growth.
"We currently have a team of 25 business development managers who source new restaurant, hotel and larger corporate accounts," said Majestic's chief executive Steve Lewis.
"We have made improvements to our on-trade proposition including the listing of a range of products exclusive to business customers and have introduced two training courses for our customers' staff: 'Confidence in Wine', which is an introduction to wine and 'Perfect Pairings', which concentrates on how to recommend food and wine matches.
"These activities add value to our proposition helping us to both win new business and retain existing customers," he added.
Results at-a-glance
Turnover: £233.2m (up 15.6 per cent)
Gross profit: £49.7m (up 19.4 per cent)
Pre-tax profit: £16.5m (up 120 per cent)
Earnings per share: 18.4p (up 247 per cent)
Dividend for the year: (up 5.1 per cent)