Comment: Majestic shows specialists can compete against big grocers

If Majestic Wine was a bottle of bubbly, it might appear to lack a little sparkle. Profits didn’t move much last year and sales were down. However, the retailer definitely retains some fizz.

It has been cutting back operations at its lower-margin wholesale business, which affected the top line. At the core retail division the numbers looked pretty rosé. Like-for-likes advanced, total store sales were up and online now accounts for 11% of UK retail sales. Similarly customer numbers advanced and the average spend per transaction was held at £128.

Over the years there has been plenty of debate about the future of specialists as some famous names have gone to the wall. However, Majestic, through qualities such as high service standards and product knowledge, shows specialists can hold their own against big grocers and new online competitors. Its shops engage consumers: last year more than 44,000 people went to a tasting event compared with 37,000 the previous year.

Majestic’s numbers met City expectations. The retailer’s multichannel model and customer focus mean it looks well positioned to toast continued success in future.

City ups and downs across 25 years

As Retail Week celebrates its 25th birthday, it’s fascinating to look back at the list of quoted retailers in 1988. Many of the names such as Ward White, Argyll and Kwik Save have long since gone from the market.

But many others are still there and testament to enormous success. Tesco, capitalised then at £2.18bn, is now worth £27.19bn. Great Universal Stores, then valued at £2.56bn, is still represented through the companies that emerged from it - Burberry and Home Retail, between them worth £7bn. And there have been pioneering new arrivals such as Asos and Ocado.

There have been upsets along the way but the industry has delivered value and investors as well as shoppers will no doubt continue to fill their trolleys with retailers.