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Majestic promises better pay for “heart of the business” retail staff

By Nagasunder in UK Business News, posted April 25, 2023

Majestic Wines has promised its retail staff a pay boost, calling them the "heart of the business."

The retailer has increased the minimum wage for shop employees to £10.60, which is higher than the National Minimum Wage.

This will start in with the average income slated to rise 6.7 percent in 2023/24.

The new incremental pay scheme means store managers will be able to earn an additional £11,700 each year on top of their base income.

They will now be paid based on their degree from the Wine & Spirit Education Trust (WSET) certificate, as well as their experience and tenure at Majestic, as well as the size of the shop they lead.

Staff will also get a £250 incentive in celebration of their work over the last year, as well as the potential to earn uncapped bonuses based on their store's performance against sales targets.

Majestic paid unprecedented incentives to store employees in 2022/23, following the retailer's second-largest Christmas trading season in its history.

It will also give store employees the chance to win trips to wineries across the world to expand their wine knowledge.

This year, over a fifth of Majestic's Retail employees, will travel to places like California, Australia, Chile, and Mexico to learn more about the trade.

The Majestic board of directors has decided not to accept a pay increase for the second year in a row and has instead funded wage increases for personnel at the wine retailer's service base in Watford and distribution centre in Hemel Hempstead.

The pay rises come as Majestic looks to speed up its expansion strategy with the help of Fortress Investment Group, which purchased the store in 2019.

The wine merchant has opened 12 new locations and renovated dozens more in the last three years.

Majestic built a tiny store concept in Harpenden earlier this month as it tests new approaches to grow its physical presence.

At 1,800 square feet, the store is less than half the size of an average Majestic store.

The company says this will allow it to try a new strategy to address communities in key priority areas across the UK.

Majestic CEO John Colley said: “We are aware that it has been an increasingly challenging 12 months for our colleagues, with the rising cost of living impacting all of us as individuals, and the cost base of the Majestic business.

“These have been key considerations for the board over the last few months as we looked at the best way to reward our colleagues for their ongoing dedication and hard work.

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“The restructuring of the pay, reward and recognition structure in our retail business marks the biggest investment we have ever made in-store colleagues since the company was founded.

“The pay structure will not only help our people through current cost-of-living pressures but also creates a scheme that gives all store colleagues the opportunity to earn more, learn more and progress their careers at Majestic.”

Source: Retail Gazette

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