Majestic Wine has reported Christmas like-for-likes up 1.1% but margins were hit as the retailer invested in price in a competitive environment.

Majestic Wine sales were up over Christmas but discounting hit its margins

Total UK store sales were up 3.7% in the 10 weeks to January 5, and up 2% for the first 40 weeks of the financial year.

Majestic Wine said: “The Christmas trading period was particularly challenging characterised by increased levels of competitive promotional activity to attract customers into store and online. 

“Whilst Majestic traded effectively over the period the company invested 50 basis points of gross margin ensuring pricing remained competitive in this more promotional environment.”

Majestic Wine chief executive Steve Lewis said: “Majestic delivered like-for-like sales growth of 1.1% in a difficult Christmas trading period characterised by promotional activity and we are now focused on delivering our final quarter’s trading.  

“We anticipate this competitive pricing environment will continue throughout much of 2015.”

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