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Majestic fails to cheer with new home delivery plan

The firm last month blamed weak on-trade business and the failure of a US direct mail campaign for a profit warning.

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Majestic customers will have no excuse not to offer a drop of vino to guests this Christmas

Wine merchant Majestic plc (LON:MJW) made a bid to push away any Halloween blues, by announcing plans for next day delivery of its bottles in time for Christmas.

The market didn't seem that impressed though and shares  drained almost 3% in London to 282.25p.

The offer is for over 1,250 of the group's offerings - including 400 fine wines.

The move is the latest step in the group's attempt at reinvention.

Last month, shares plunged by a quarter after it blamed weak on-trade business and the failure of a US direct mail campaign for a profit warning.

It forecast pre-tax earnings before interest in its current financial year to April 2017 to fall short of market expectations of £16.1mln.

Today, the group said the six bottle minimum online order had been removed and a "No Quibble" returns policy is in place.

John Colley, the managing director of Majestic Retail, said: "This is a big step in our transformation plan and will help support Christmas trading.

"We are putting the customer back at the heart of Majestic and can now offer a complete multi-channel experience which will deliver real benefits to our customers, people and therefore our shareholders."

The delivery service, will be brought on stream via  a new National Fulfilment centre (NFC) which is managed by Wincanton plc and based in Greenford.

Quick facts: Majestic Wine PLC

Price: 256.5 GBX

AIM:WINE
Market: AIM
Market Cap: £186.33 m
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