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Majestic’s online orders rise by a quarter following minimum order reduction

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Majestic Wine today said that its online orders grew in volume by 25% after it reduced its minimum order from 12 to six bottles.

The multichannel wine retailer said that the growth, which came after the minimum order for delivery was reduced in June 2012, more than offset a 7% dip in average online order value to £134.

The update came in Majestic’s results for the year to April 1, which also showed that online orders grew by 14.7% over the year and now account for 11.1% of total UK retail sales.

Group pre-tax profit in the year rose by £0.5m to £23.7m while UK like-for-like sales were up by 1%. Total group revenue fell by £5.9m to £274.4m after the company reduced its exposure to the wholesale drinks market.

Majestic now plans further investment in internet retailing, with the next generation of its website scheduled for launch in the summer, powering both its main website and a mobile-optimised site. An improved stock system will also enable customers to order from a broader range of products, based on what is available locally. There will also be capacity to pre-order online from Majestic’s Calais branch.

Chief executive Steve Lewis (pictured) said: “Majestic is in excellent shape and has made good progress with the four key elements of our future growth strategy: new stores, business customers, ecommerce and fine wine.”

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