Majestic's sales in good health

MAJESTIC Wine's fast-growing UK business continues to tick over nicely, with interim like-for-like sales rising 7.4% and Christmas trading making a strong start.

Chief executive Tim How said like-for-like sales growth in the first six weeks of the second half accelerated to 10.4% as seasonal promotions got under way.

With champagne and Chilean, New Zealand and Bordeaux wines expected to do well, the drinks retailer is pencilling in 7% like-for-like sales growth over the festive period.

Pre-tax profits in the six months to 27 September rose 26.6% to £5.01m as greater numbers of UK drinkers spent more on each bottle of wine and more on each purchase, the firm said. Internet customer numbers have risen 8.7% in the last 12 months to 337,000.

Customers spent an average of £5.46 on each bottle, up from £5.31 in 2003, while the average spend per transaction rose to £110 from £104.

How said that improvements to the range, burgeoning sales of fine wines costing more than £20 a bottle, and more deals with businesses - now almost a third of total sales - also helped.

Majestic has 120 UK stores and three in France.