UK

Majestic Christmas Sales Up 1.1% In Like For Like Figures As Customers Seek Out Good Service

08/01/2013 09:30 GMT | Updated 08/01/2013 09:37 GMT

Wine and spirits retailer Majestic has reported a reasonable trading update for the Christmas period, with like for like sales up 1.1% and total sales up 5.1%.

Steve Lewis, chief executive of Majestic, made a brief statement to accompany the results, in which he said the company had found the Christmas season "challenging, with many consumers leaving their shopping until the very last moment".

In an analyst note, Investec's Bethany Hocking said the figures were a "good result" and in line with expectations.

"Majestic has a strong management team, offers future growth from both new stores and online...The service focussed business model should lead to continued market share gains and new customers," Hocking said.

Business analyst for Company Watch Nick Hood told Huff Post UK: "With consumer spending clearly subdued this Christmas, Majestic has inevitably seen a pause in its strong recent upward sales curve. We must now wait to see what impact the sluggish festive trading has had on margins and bottom line profits. Just like every other retail sector, the wine trade has seen real price pressure from value-hungry shoppers.

"Majestic's overall financial position is comfortable, with a mid-range health rating of 52 out of a possible 100 reflecting its very modest debt levels. It is well positioned to ride out what looks like being another very challenging year for all retailers."