In Britain, as Majestic Wine moves their focus to its emerging online naked wine business, it could sell its 200 or more branches as per the information collected from the retailer. The declaration is the latest indication of the emerging challenges faced by the traditional store groups of Britain, with rising property taxes and low-profile consumer spending along with with the additional competitive pressure by the different discount chains, as well as online rivals.
The distinct, as well as largest wine retailer of Britain, Majestic Wine informed it was attempting to sell some assets and also close some stores last month, reviewing its revenue, but did not give any indication about the probability of selling off its all UK stores.
In an earlier report of some unrecognized sources, the news claimed that Majestic Wines had tied up with investment bank Rothschild through an appointment for seeking potential buyers and also involved with private equity firms for accessing interest for a possible investment possession of its UK stores.
A company representative said, “ While a total sale of Majestic Retail continues to be a potential option, it would be wholly unwise to pursue a single track process and materially limit the potential value that can be realized to drive growth”. He also added, “ we believe the combination of customer migration, disposals, and store closures from Majestic Retail will release substantial investment capital and transform the company into an out-and-out growth business.”
Majestic Retail appoints more than 1,000 people, as per the website. The company will provide more information about its plannings on 13 June. majestic Wine shares were up to 1 percent at 1345 GMT.
The company, which has almost a million customers in the UK, Australia, and the United States, plans for rebranding along with a new name ‘Naked Wines Plc’. It bought the online retail business in 2015 and has since more than doubled its size.
The firm simultaneously operates Majestic Retail and Naked Wines, as well as Majestic commercial, which is a distinct supplier of wine to business, Lay and Wheeler, as a specific fine wine merchant. Majestic has also been trying to develop outside Britain as the country prepares to be separated from the European Union. The revenue of online sales of its business is almost 45 percent, while almost 20 percent comes from its international operations.