Naked Wines’ owner Majestic says Christmas was “more difficult than expected”
- Credit: Archant © 2009
Majestic Wine has revealed that the Christmas trading period was more difficult than expected.
The company, which owns Norwich based Naked Wines, as well as having its own outlet in Dereham Road, said that although it had seen an increase of 1.5% in retail sales, gross margins had been driven down by 1.2% given the 'very price promotional market'.
Total sales were 6.3% higher in the 10 weeks to December 31, accelerating from the 3.2% growth rate seen this time last year.
Naked Wines has been a major player in Majestic's growth, attributing for a 15.9% increase in growth this year.
Chief executive Rowan Gormley said changes in consumer behaviour were driving a retail revolution.
You may also want to watch:
'We think there will be winners and losers, and we believe we have what it takes to be one of the winners. We are uniquely placed, with the people, data and skills in place to succeed, despite the headwinds we are seeing,' he said.
The crucial Christmas season, in which the group usually delivers around 30% of its annual sales, proved more challenging than expected due to economic uncertainty and weak consumer confidence.
- 1 McDonald's branch to close for up to three months
- 2 'I ran for my life' - Neighbour who saw fatal row tells of terror
- 3 Hospital to close with loss of 120 jobs
- 4 Injured man found on Norfolk beach could be linked to woman's death
- 5 Man dies after 'industrial incident' at farm
- 6 Tributes to 'well-known, well-liked, well-respected' King's Lynn fan
- 7 Mental health hospital owed £2m to staff and creditors when it shut
- 8 Concern over state of beach following £22m sandscaping project
- 9 12 villages set to receive some of UK's fastest ever broadband
- 10 'One crazy decision' - Mother's anguish over son's death as dealer jailed
However, Majestic said it still expects to report annual profits in line with market expectations.
Shares in the company inched 1.2% higher in early trading.
The retailer revealed in November that it was responding to the uncertainty around Brexit by stockpiling £8 million worth of wine.