Wine retail giant Majestic has raised a glass to its best-ever Christmas trading period, with record-breaking sales that defied a broader downturn in the alcohol sector. The company experienced its most successful single day in history just before the festive break, as consumers rushed to stock up on premium drinks.
Unprecedented Festive Performance
The Watford-based retailer, which operates approximately 200 stores across the UK and Jersey, revealed that 23 December marked an unprecedented peak in sales, surpassing a previous record established in 2024. A robust Christmas Eve also saw significant last-minute purchases of wine, beer, and spirits ahead of the bank holiday closure.
Over the crucial five-week trading period leading up to 29 December, Majestic's overall sales saw a modest increase of nearly 1 per cent compared to the same period last year. More impressively, customer numbers surged by 11 per cent, indicating growing consumer engagement with the brand.
Defying Market Trends
This growth stands in stark contrast to the broader retail alcohol market, which according to Kantar Worldpanel data contracted by 4.1 per cent during December. The strong festive performance follows a challenging financial year for Majestic, where its pre-tax profit was almost halved, falling from £14.3 million to £7.8 million.
Company executives attributed the profit impact to Government tax hikes pushing up their cost base, as well as increases to the national minimum wage driving up staff expenses. Despite these financial pressures, the Christmas trading results demonstrate remarkable resilience in a difficult market environment.
Premium Product Performance
The trading update revealed particularly strong performance in specific product categories. Fine wine sales increased by 4.8 per cent over the weeks before Christmas, while English wines soared by an impressive 27 per cent year on year.
Sales of wines from what Majestic describes as "off-the-beaten track" regions, including Greece, Germany, Austria and Hungary, grew by 14 per cent. This suggests consumers are becoming more adventurous in their wine selections while still seeking quality products.
Strategic Positioning Pays Off
Elizabeth Newman, Majestic's retail managing director, commented on the trading success, noting it came "at a time when customers are moderating their alcohol spend but seeking out better quality wines, beers and spirits." She attributed the strong performance to Majestic's "differentiated product range" and "expert advice" drawing customers to their stores.
The company's strategic positioning appears to be paying dividends, with consumers apparently willing to pay more for quality guidance and premium products even as they reduce overall alcohol expenditure. This trend toward "drinking less but better" has created a favourable environment for specialist retailers like Majestic.
Recent Acquisitions and Future Prospects
Majestic's recent acquisition of Vagabond, a self-pour wine bar chain purchased for £6.5 million in 2024, represents part of their broader strategy to diversify their business model and appeal to changing consumer habits. This move into the experiential side of wine retailing complements their traditional store-based approach.
The record Christmas trading provides welcome positive news for the company after a difficult financial year, suggesting that their focus on quality, expertise and diverse product ranges is resonating with UK consumers. As the retail alcohol market continues to face challenges, Majestic's ability to buck the trend demonstrates the enduring appeal of specialist knowledge and premium products in the competitive drinks sector.
