A festive cheer failed to stop declining sales at wine warehouse chain Majestic.

Like-for-like sales in the final nine weeks of 2007 grew just 1.2%, compared with 2.2% gains seen in October.

A 4.1% increase in like-for-like sales in the five weeks to December 31 followed a 'disappointing' November for the group, chief executive Tim How said.

Sales fell by around 5% in November, despite promotions on New Zealand wines helping the chain recover as Christmas approached.

Mr How said: 'It was very slow and reflects our view that consumers are being more cautious and left it very late this year.'

The company plans to open 10 new stores this year, giving it a portfolio of 150 outlets.

New warehouses are planned at sites including Bangor in North Wales, Bristol, Carlisle and Bishop's Stortford in Hertfordshire.

How vowed not to cut back on Majestic's expansion plans, despite challenging market conditions.

Shares in the company fell 1% to 267.5p. Stockbroker Altium cut its full-year pre-tax profit forecast by 6.1% for 2008 and 6.7% for 2009 and said the share price could weaken, but still remains upbeat on the company's long-term position.

'(It has an) excellent financial track record, strong management, freehold exposure, substantial future growth potential and ability to generate surplus cash,' said Altium analyst Greg Feehely.