Member Article

NE promotion brings changes for wine chain

A trial campaign carried out by a wine chain in the North East has led to a nationwide change in operations for the company.

Customers of warehouse chain Majestic Wine will only have to buy six bottles per visit after a successful trial in the North East convinced owners to halve the minimum purchase.

It is hoped the new policy, trialed in the company’s Newcastle and Darlington stores, will broaden Majestic’s customer base - particularly in towns and cities, where people are more likely to walk to its shops instead of driving.

The company, which has 150 UK outlets, said customer feedback from its trial had been “very positive”.

Despite a fall the firm’s shares of 6%, analysts broadly welcomed the move.

Investec’s Natalia Marisova said the new minimum would widen the group’s appeal at “no detriment” to customers looking to buy 12 bottles or more.

The change of tack comes three months after Majestic’s annual profits more than halved because of lower sales of champagne to recession-hit firms and a weak pound making European wines more expensive to buy.

While like-for-like sales rose 2% in the 10 weeks to the beginning of June, the group’s prospects hinge on this year’s festive period.

This was posted in Bdaily's Members' News section by Ruth Mitchell .