Wine specialist, Majestic Wine has reported that it aims to reach a £500 million+ sales target within the next four years, despite profits being halved to £4.3 million.
The company is planning to deliver “sustainable, volume led earnings growth and improved return on capital” and will concentrate more on new customer recruitment to drive higher returns rather than new store openings, so it has reduced its store target from 330 to 230.
Rowan Gormley, Majestic CEO, said: "Six months into my new job it is clear to me that we have a solid core business at Majestic, and two great growth engines in Naked and our Commercial business.“
He added: “We have a clear plan, which will require investment and take 3 years to complete, but will also deliver a better business that can create sustained growth in shareholder value.
“Fortunately, the board acted decisively and quickly when it became clear that a change of direction was required, so our core competitive strengths are intact and provide a sound foundation to work from.
“As a result, profit for the current year is expected to be impacted by the increased investment derived from our successful test period after which we expect to see sustainable growth as the anticipated returns from our initiatives are realised."
