Dan Murphy'sBusiness

The fastest growing category at Dan Murphy’s

Total sales for Endeavour Group have increased 21.4% in Q1 of 2020 to $2,654 million. Comparable sales growth remained strong at 20%, with Dan Murphy’s “continuing to outperform”.

Last week, Coles Liquor reported its sales revenue was $852 million for the first quarter, an increase of 17.4% on the prior corresponding period, with comparable sales growth of 17.8%.

“Within Endeavour Group, Endeavour Drinks’ sales remained very strong through the quarter, with Dan Murphy’s and eCommerce sales the highlights, CEO Brad Banducci said.

“Hotel trading continued to be impacted by the closures in Victoria with total sales declining by 33.2%.”

Woolworths Group said overall sales growth was being driven by an increase in customer transactions, with items per basket broadly flat. However it said monthly growth was “moderating over the quarter”.

Endeavour Drinks’ sales continue to benefit from in-home consumption, with Father’s Day trading performance a highlight.

Biggest sellers at Dan Murphy’s

Spirits was the fastest growing category in Dan Murphy’s and BWS led by the continued popularity of gin. Wine sales remain strong, driven by premium wines and strong growth in Pinnacle brands, particularly in Dan Murphy’s. Beer sales benefitted from continued craft beer growth.

At Coles, champagne, gin and single malt whisky all grew by more than 50%.

Digital and eCommerce momentum was strong for Endeavour Group in Q1 with eCommerce sales increasing by 57.6% compared to last year, driven by higher traffic and conversion rates which have offset a decline in average order value.

eCommerce penetration across Endeavour Drinks reached record levels, increasing to 8.6% compared to 7.1% penetration in Q420. eCommerce growth was particularly strong in BWS, more than double last year, albeit from a lower base.

Dan Murphy’s loyalty program – My Dan’s – cycled its relaunch with more than a million new members added over the past 12 months to 4.8 million members at the end of the quarter.

Scan rates of Everyday Rewards cards at BWS, and My Dan’s scan rates both increased materially on the prior year “reflecting increased member engagement”.

“Endeavour Drinks continued to support local producers during the quarter by fast-tracking their products into stores and online, as well as extending the shorter payment terms for small suppliers,” Woolworths said.

During the quarter, BWS also launched its Local Luvva campaign, promoting 110 local independent brewers, winemakers and distillers across billboards, digital screens and social media.

During the quarter, 10 BWS stores were opened, and five stores were closed ending the quarter with 1,374 stores. Dan Murphy’s store network ended the quarter with 242 stores following the opening of one new store in the period.

“For the rest of the calendar year, we expect elevated sales and costs to continue as customers spend more time at home, continue to embrace eCommerce and we ensure our stores remain COVIDSafe,” Banducci said.

”Christmas is only 50 days away and it will be very different to previous years; however, we have worked hard as a team to ensure that all Woolworths Group businesses provide our customers with the opportunity to celebrate the spirit of Christmas in an enjoyable, affordable and COVIDSafe way.”

Hotels heavily impacted

Hotels continued to be impacted by closures in Victoria and operating restrictions in other states with total sales declining by 33.2% to $313 million.

Sales growth was broadly consistent over the quarter but slowed marginally in August and September.

All categories were below last year as varying state-based COVID restrictions remained in place throughout the quarter. Bars and food were the best performing categories.

In September, The Gateway Hotel in Mareeba, Queensland, was acquired and at the end of the quarter there were 330 venues and five managed clubs.

Across the country, 247 hotels were open at the end of the quarter, three were closed for refurbishment and redevelopment and 80 venues and five managed clubs in Victoria were closed.

All Victorian venues will reopen on November 9, but will continue to
operate with applicable state government restrictions.

Processing…
Success! You're on the list.

Categories: Business

Leave a Reply

Your email address will not be published.