Tuesday, June 18, 2024

Woolworths liquor group ahead of the pack

A Roy Morgan Research report has found that Dan Murphy’s is leading the charge against other liquor retailers when it comes to market share and customer numbers.

According to the report, in any given week, 1.2 million people of legal drinking age shop at Dan Murphy’s, spending an average of $67 each, generating 26.3 per cent share of total dollars spent on alcohol during an average seven-day period, putting it ahead of Woolworths’ other liquor chain, BWS, which has 17.9 per cent of the total weekly liquor spend.

With 1.1 million people shopping at BWS in an average seven days, it is only just behind Dan Murphy’s in terms of customer volume, but with BWS customers spending considerably less on average – around $48 – than Dan Murphy’s shoppers, the difference in market share between the two banners is more pronounced.

However, Roy Morgan Research’s General Manager of Consumer Products, Andrew Price, says the findings will come as great news to Woolworths Ltd, which has the highest share of Australia’s liquor market, with just over 44 per cent between Dan Murphy’s and BWS.

“With its enormous, well-stocked stores, low-price policy and strong online presence, Dan Murphy’s also happens to be the current ‘liquor store of the month’ in the Roy Morgan Customer Satisfaction Awards,” he said. “Clearly, the chain is ticking all the right boxes among Australia’s alcohol buyers, who not only flock there in droves but rack up one of the higher average weekly spends.

“BWS serves a different purpose, being geared more towards convenience with its stores located adjacent to Woolworths supermarkets. It’s interesting to note that Woolworths also has a finger in the wine-club pie with Cellarmasters, one of the country’s leading online wine stores.

“With its three very different liquor retail offerings, Woolworths seems well positioned to thrive in this competitive market even as the proportion of Australians drinking and buying alcohol continues to decline.”

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