// Majestic Wine to open new stores under new plans for post-lockdown growth
// 150,000 new customers gained during lockdown, alongside unprecedented online growth of over 300%
// UK wine market share grows to 5.3% vs 4.5%
Majestic Wine has revealed a new growth strategy, which includes plans to open new stores, after recording bumper sales and increased market share during lockdown.
Despite closing its shop doors to walk-in customers during government-mandated lockdown, Majestic Wine said it saw an influx of over 150,000 new customers utlising its local delivery service.
Searches for the alcohol retailer were also up a record 3500 per cent according to Google, allowing Majestic Wine to increase its market share from 4.5 per cent to 5.3 per cent during the first six months of 2020.
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Although Majestic Wine’s online channel saw an increase in sales of over 300 per cent throughout lockdown, this had been offset by additional costs and the significant reduction in revenue in the retailer’s business-to-business arm and Calais stores.
Nonetheless, Majestic Wine chief executive John Colley said the performance of its stores in adapting to lockdown conditions was one of the key driving factors behind the new growth strategy.
Alongside the plan to open new stores, the retailer is also committing to redouble its staff training – with every employee to receive industry leading WSET training by Christmas – alongside the launch of a new website and EPOS platform by autumn this year.
Of its store expansion stragey, Majestic Wine confirmed sites in Henley and Beckenham that will open this year.
“Now we have the vision and strategy to take the company forward as one team, and I am convinced that this forty year old company has a really exciting future ahead,” he said.
“Getting back to what we do best is the absolute cornerstone of our plan to grow Majestic. Our stores are at the centre of who we are and what we do.
“The way they adapted to working as delivery hubs meant we were able to come through lockdown in good shape. Who knows what the future will hold, but I feel confident that a new strategy based around stores is the best one for us.”
Now in private ownership following the de-merger of Naked and Majestic PLC last year, Majestic Wine said a “sensible investment model” will provide long term stability while reversing a trend that has seen the retailer’s profits slide over a five year period.
“There is still absolutely a role for bricks and mortar wine retail in this country, particularly when backed up by a first rate range and the right focus with our hugely experienced and trained store colleagues,” Colley said.
“When you couple that with a leading online proposition, you have a unique position.
“The recent unprecedented situation has shown what a special business Majestic is, with more customers than ever before discovering the service, expertise and range we have to offer in our stores – even when our doors were closed.”
He added: “As we come out of lockdown, we’re seeing customers who have discovered us as an online retailer over the past couple of months now visiting our stores – and getting the true Majestic experience.
“If anything, this has given us more confidence in the role of our bricks and mortar arm, and it’s ability to offer a truly multi-channel experience for our customers.
“We think that the future will not be about one channel or the other, but instead having the best possible service across all channels for our customers to experience and discover.”