Majestic profits sink
Majestic were planning to expand their store base to 330, but as pre-tax profits fell by 50% in the first half of its financial year, that now seems too optimistic. The expansion is now being limited and will now go from 211 to 230 new stores. Profits fell due to charges related to the Naked Wines acquisition with its under-performing Lay & Wheeler subsidiary. Like so many other wine retailers in the UK, Majestic has also been hit hard by discounters Aldi and Lidl. Majestic are now looking at a so called root and branch reform. They will be concentrating on their core Majestic business and the 2 new growth engines Naked Wines and the commercial business. The investment will go into marketing, IT and staff, over the next 3 years.