Wesfarmers’ Scott eyes the long game

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 24 : 26-Oct-17

Grocery giant Coles has reported an 0.3 per cent decline in sales for the September quarter, to $A9.4bn. Same-store food and liquor sales increased by just 0.4 per cent, down from 0.7 per cent growth in the previous three months and well below the forecasts of some analysts. Wesfarmers’ incoming MD Rob Scott remains upbeat about the outlook for Coles, forecasting that it will return to sales growth in the second half of 2017-18. Meanwhile, Kmart has reported same-store sales growth of 4.9 per cent, but Target has posted a 6.4 per cent decline.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, BUNNINGS GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, CITIGROUP PTY LTD, VIVA ENERGY AUSTRALIA LIMITED

IGA Liquor tops latest satisfaction ratings

Original article by Roy Morgan Research
Market Research Update – Page: Online : 20-Oct-17

A Roy Morgan Single Source survey has found that customer satisfaction with IGA Liquor rose by 17.3% to 93.4% in the year to August 2017, which now places it ahead of its major competitors. This is a major turnaround from a year ago, when IGA was ranked ninth and well behind the market leaders. IGA is followed by Dan Murphy’s (92.4%), Aldi Liquor (91.0%) and First Choice Liquor (90.1%). Roy Morgan has developed a segmentation based on a person’s level of non-essential or discretionary expenditure, which includes purchases such as wine, travel and entertainment. The top third of discretionary spenders are "Big Discretionary Spenders" and so represent the largest potential for increased liquor sales. The liquor stores and retailers with the highest proportion of "Big Discretionary Spenders" in their customer base are First Choice Liquor (44.1% of usual customers are "Big Discretionary Spenders"), Dan Murphy’s (43.1%), IGA Liquor (41.8%) and Liquorland (40.6%). This group has the greatest potential to increase sales from their existing customer base.

CORPORATES
ROY MORGAN RESEARCH LIMITED, IGA LIQUOR, DAN MURPHY’S, ALDI LIQUOR, FIRST CHOICE LIQUOR SUPERSTORE, LIQUORLAND (AUSTRALIA) PTY LTD

The Australian alcohol retail market in review

Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Mar-17

The latest Alcohol Retail Currency report from Roy Morgan Research shows that Australians spent $14.5 billion on alcohol they purchased from a liquor retailer (as opposed to a bar or other licensed venue) in 2016. Dan Murphy’s accounted for nearly 30% of the total dollars (or $4.3 billion) spent on alcohol (up from 25.4% in 2015). Woolworths’ two other alcohol retailers, Woolworths Liquor and BWS, saw their market share shrink, but the three Woolworths-owned retailers had a total dollar market share of 49.2% ($7.1 billion). First Choice was the best of the Coles-owned liquor retailers, growing its market share from 4.5% to 5.0% ($0.7 billion) over the last year, while ALDI Liquor increased its share to 3.5% (or $0.5 billion) from 2.4% year-on-year. Proportionally speaking, supermarket-owned chains now account for 72.3% of the total market share (up on 69.1% in 2015), with other alcohol retailers trending either downwards or steady.

CORPORATES
ROY MORGAN RESEARCH LIMITED, DAN MURPHY’S, WOOLWORTHS LIQUOR, BWS – BEER WINE SPIRITS, WOOLWORTHS LIMITED – ASX WOW, FIRST CHOICE LIQUOR SUPERSTORE, COLES GROUP LIMITED, ALDI LIQUOR, ALDI STORES SUPERMARKETS PTY LTD, LIQUORLAND (AUSTRALIA) PTY LTD, THIRSTY CAMEL PTY LTD, CELLARBRATIONS, VINTAGE CELLARS (AUSTRALIA) PTY LTD

First Choice Liquor: first in customer satisfaction

Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-Oct-16

For the third consecutive month, First Choice Liquor has come first in the Liquor Store category of Roy Morgan Research’s Customer Satisfaction Awards, with a score of just over 93 per cent in August 2016. It is followed by Cellarbrations (93 per cent) and Dan Murphy’s (92 per cent). Meanwhile, 48 per cent of people who usually shop at a Cellarbrations store say that being "located where I do other shopping" is important, compared with just 28 per cent of First Choice customers. However, 81 per cent of First Choice shoppers identify "good value" as an important factor, compared with 61 per cent of Cellarbrations customers.

CORPORATES
ROY MORGAN RESEARCH LIMITED, FIRST CHOICE LIQUOR SUPERSTORE, CELLARBRATIONS, DAN MURPHY’S, IGA LIQUOR, INDEPENDENT BRANDS AUSTRALIA PTY LTD

Woolies chief sees green shoots

Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 26-Aug-16

Australian-listed retailer Woolworths has posted a 2015-16 net loss of $A1.23bn, while revenue was down 1.2 per cent at $A58.08bn. The result was marred by write-downs and impairment charges exceeding $A4bn. CEO Brad Banducci says further reducing grocery prices will continue to be a priority in 2016-17. He adds that there was 0.3 per cent growth in like-for-like store sales during the first eight weeks of the financial year. Shareholders will receive a final dividend of $A0.33 per share.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS GROUP, DAN MURPHY’S, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED

Not all liquor stores were created equal

Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-Feb-16

A Roy Morgan Single Source survey, which was carried out in the year to September 2015, has found that 47 per cent of Australians aged 18+ who buy alcohol in an average four weeks believe that "all liquor stores are about the same". This compares with 56 per cent in the year to September 2006. Meanwhile, the proportion who agree that "no single liquor store is best, but two or three are better than others" has risen from 35 per cent to 42 per cent over the same time period; and those who feel that "one liquor store is the very best" rose from six per cent to nine per cent. Among alcohol-buyers who feel that "two or three stores are better than others", 78 per cent nominated Dan Murphy’s, ahead of BWS (38 per cent), Liquorland (28 per cent) and 1st Choice (23 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED, DAN MURPHY’S, BWS – BEER WINE SPIRITS, LIQUORLAND (AUSTRALIA) PTY LTD, FIRST CHOICE LIQUOR SUPERSTORE

Dan Murphy’s (and Woolworths) blitzing the Aussie liquor market

Original article by Roy Morgan Research
Market Research Update – Page: Online : 16-Nov-15

A Roy Morgan Single Source survey has found that 4.8 million Australians aged 18+ buy alcohol in an average seven days, spending almost $A296 million between them (an average of $A61 per person per week). The survey, which was carried out in the year to September 2015, also shows that 1.2 million Australians (23.9 per cent of total alcohol-buyers) shop at Dan Murphy’s in any given week, spending an average of $A67 each. Meanwhile, 1.1 million Australians shop at BWS in an average seven days, spending an average of $A48 each.

CORPORATES
ROY MORGAN RESEARCH LIMITED, DAN MURPHY’S, BWS – BEER WINE SPIRITS, LIQUORLAND (AUSTRALIA) PTY LTD, FIRST CHOICE LIQUOR SUPERSTORE, CELLARMASTER WINES PTY LTD, THE WINE SOCIETY LIMITED, ALDI LIQUOR, WOOLWORTHS LIMITED – ASX WOW

Woolies rewards to cost it $500m a year

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 27-Oct-15

Woolworths’ revamped customer loyalty scheme will reward shoppers for purchasing about 500 grocery items. The Australian Centre for Retail Studies estimates that it would take less than eight weeks for the average customer to cash in their credits for a $A10 reward. Michael Simotas of Deutsche Bank expects the new scheme to cost Woolworths around $A500 per year.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN CENTRE FOR RETAIL STUDIES, MONASH UNIVERSITY, DEUTSCHE BANK AG, THOUGHTWORKS AUSTRALIA PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, QANTAS FREQUENT FLYER LIMITED

Wine buyers splash out

Original article by Simon Evans
The Australian Financial Review – Page: 15 : 17-Jul-15

Liquor retailers have reported a strong rise in sales of Treasury Wine Estates’ more upmarket wine brands in response to a limited offer in which they can buy a $A3,000 wine cabinet for just $A1,199. Consumers who spend at least $A500 on wine brands such as Penfolds, Wolf Blass and Wynns Coonawarra can buy the wine cabinet at the heavily discounted price in July and August 2015. A smaller wine cabinet is also available at a deep discount to people who spend at least $A180 on wine.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, WYNNS COONAWARRA ESTATE PTY LTD, DAN MURPHY’S, WOOLWORTHS LIMITED – ASX WOW, BOCCACCIO CELLARS PTY LTD, WINE AUSTRALIA PTY LTD

Shopping for a drop: what Aussies like in their liquor stores

Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-Feb-15

A Roy Morgan Single Source survey has found that 49 per cent of Australians aged 18+ bought alcohol in an average four-week period in the year to December 2014. The survey also shows that 68 per cent of Australians identify "good value" as one of the factors they consider most important when purchasing alcohol. Meanwhile, 54 per cent of Australians prefer to purchase alcohol from a bottle shop that is close to home

CORPORATES
ROY MORGAN RESEARCH LIMITED, CELLARMASTER WINES PTY LTD, THE WINE SOCIETY LIMITED, LIQUORLAND (AUSTRALIA) PTY LTD, WOOLWORTHS LIQUOR, WOOLWORTHS LIMITED – ASX WOW