Bargain Booze and Wine Rack profits rise20th January, 2014 by Lauren Eads
The owners of Bargain Booze and Wine Rack have reported a pre-tax profits rise of 13% boosted by successful Christmas sales.
Conviviality Retail reported a rise in like-for-like franchise sales at Wine Rack of 21.8% and of 2.8% at Bargain Booze in the first two weeks to January 5, pushing group profits before tax up by 13.6% to £2.2m.
Diana Hunter, chief executive officer of Conviviality Retail, said: “Throughout the first half we have implemented our strategy to improve the quality of our store estate and build stronger relationships with our Franchisees and Suppliers.
“We acquired the Wine Rack business on 30 August, increasing focus on our wine offering and penetrating further into the South of England.
“As anticipated store numbers and therefore revenues have reduced in the first half of this financial year, this reduction is in line with our expectations and is consistent with our aim of improving the quality of our store estate.
“Work is underway to build a strong pipeline of new stores in higher quality locations for both Bargain Booze and Wine Rack and convert this pipeline to drive sales growth in future years.”
Conviviality Retail currently operate 614 store comprising 592 Bargain Booze and 22 Wine Rack stores – the latter having been acquired in August 2013.