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Supermarkets increase share of retail alcohol market

A Dan Murphys store (Photo: McCartney Design)

The supermarket chains have increased their share of the retail alcohol market while independent stores continue to decline. That’s according to the latest Alcohol Retail Currency report from Roy Morgan Research. It found supermarket-owned chains now account for 72.3% of the total Australian off-premise (take-away) alcohol retail market. This is up from 69.1% in 2015.

In contrast, independents’ share declined markedly, from 12.7% to 10.4% in the same period (2015-16). Duty-free stores also suffered: they account for just 0.5% of total alcohol retail dollars, down from 1.4%. Hotel bottle shops and wine clubs were relatively stable.

Online liquor trade newsletter The Shout reported that supermarket chains such as Dan Murphy’s, First Choice, Liquorland, BWS and Aldi Liquor garnered $10.5 billion of the total amount spent by Australians on alcohol in a retail environment in 2016. Hotel bottle shops such as Thirsty Camel accounted for $1.8 billion, ahead of independents such as Cellarbrations ($1.5 billion), wine clubs ($0.7 billion) and duty-free stores ($0.1 billion).

The total value of the liquor retail market was $14.5 billion.

Dan Murphy’s accounted for 29.9% of the total dollars spent by Australians on off-premise alcohol in 2016, up from 25.4% in 2015. The continued rise of the ‘big box’ store was further highlighted as BWS saw its market share decline, while within the Coles group, First Choice grew its market share from 4.5% to 5%, while Liquorland and Vintage Cellars both recorded declines.

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