// Majestic has increased basic pay for store staff to £10,60, ahead of the National Minimum Wage
// Store managers will be able to earn an additional £11,700 per year
Wine retailer Majestic has made its biggest ever investment in pay to better reward its staff and allow them to “earn as they learn”.
The retailer, which termed its retail teams “the heart of the business”, has upped its basic pay for store staff to £10.60 – ahead of the National Minimum Wage – from the beginning of April, with the average salary set to increase 6.7% in 2023/24.
Store managers will be able to earn an extra £11,700 per year on top of their base salaries due to a new incremental pay structure.
Managers will now be rewarded staff for their Wine & Spirit Education Trust (WSET) qualification level, alongside their experience and tenure at Majestic, and the size of shop they lead.
Majestic staff will also be paid an additional £250 bonus in recognition for their efforts over the past 12 months and will retain the ability to earn uncapped bonuses based on their store’s performance against sales targets.
In 2022/23, the bonuses Majestic paid to store colleagues hit a record high following the second-biggest Christmas trading period in the retailer’s history.
The retailer will also offer store staff the opportunity to win trips to wineries around the world to further their wine knowledge.
This year around a quarter of Majestic’s Retail colleagues will enjoy trips to destinations including California, Australia, Chile and Mexico.
The Majestic board have opted not to take a pay rise for the second year in a row and will instead fund the salary increase for staff across the wine retailer’s support centre in Watford and distribution centre in Hemel Hempstead.
The pay increases come as Majestic seeks to accelerate its growth plan with the backing of owner Fortress Investment Group, which snapped up the retailer in 2019.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The wine retailer is pushing ahead with store expansion, opening 12 new stores during the past three years and refurbishing dozens more.
Earlier this month Majestic opened a small store concept in Harpenden as it trials new ways of expanding its brick-and-mortar presence.
The store is less than half the size of the average Majestic shop at 1,800 sq ft, allowing the business to test a fresh approach to reaching communities in key target areas of the UK.
Majestic CEO John Colley said: “We are aware that it has been an increasingly challenging 12 months for our colleagues, with the rising cost of living impacting all of us as individuals, and the cost base of the Majestic business.
“These have been key considerations for the board over the last few months as we looked at the best way to reward our colleagues for their ongoing dedication and hard work.
“The restructuring of the pay, reward and recognition structure in our retail business marks the biggest investment we have ever made in store colleagues since the company was founded.
“The pay structure will not only help our people through current cost-of-living pressures, but also creates a scheme that gives all store colleagues the opportunity to earn more, learn more and progress their careers at Majestic.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
