Strike action that caused shortages at Endeavour Group liquor stores has ended following Woolworths Group reaching an agreement with workers at its four distribution centres in Victoria and NSW.

The industrial action is estimated to have cost Woolworths Group alone $140 million and rising, while Endeavour Group estimates its sales were adversely impacted by approximately $25 million.

Endeavour Group noted in a statement to the ASX: “Sales will continue to be impacted while stores are replenished. The full financial impact at this stage is unknown as it will depend on the time required to restore inventory levels in both our
stores and distribution centres.

“The loss of sales from stock-outs may be exacerbated by the timing of the disruption, given the importance of December trading to the Groups first half result. This one-off impact was not factored into the guidance that Endeavour Group provided at its first quarter sales update on 11 November 2024.”

Endeavour Group CEO Steve Donohue said: “I would like to thank our customers for their patience and our supplier partners for their support during the past few weeks. I would also like to acknowledge our team members in stores and in our support office who are working to replenish affected stores as soon as possible.”

New agreements negotiated by the United Voice union provide distribution centre workers with wage increases over three years of approximately 11% in total, while team member concerns about performance metrics have also been addressed.

The endorsed deals come after 17 days of strike action impacting store service levels. While all sites are now operational, Woolworths Group anticipates there will be further sales and earnings impacts in Q2, due to the time and effort required to rebuild stock levels at both the distribution centres and stores ahead of the busy Christmas trading period.

Woolworths Group CEO Amanda Bardwell said: “With just over two weeks until Christmas, we are now moving products out of the distribution centres and onto supermarket shelves as quickly as possible for our customers.

“We are fully focused on restoring stock levels and getting products to stores where they are needed most, with stock levels to
gradually improve as we seek to provide customers with a great shopping experience this Christmas.”

Endeavour Group – which operates Dan Murphy’s and BWS bottle shops – demerged from Woolworths in 2021, however some of its stores are still supplied through Woolworths distribution centres.

Now the race is on to ensure favourite drinks are on shelf during the festive season.

According to the Australian Financial Review there were shortages at some stores during the industrial action, while others were only receiving deliveries intermittently.

“We are actively working to replenish those products and are committed to ensuring our customers have access to our wide range of products and quality service during this busy time,” an Endeavour Group spokeswoman said last week.

“The degree of impact on stock differs across our stores, with some locations experiencing minimal disruption.”

More than 1500 United Workers Union voted to take indefinite strike action at distribution centres including the Melbourne Liquor centre, which supplies alcohol to Dan Murphy’s and BWS outlets.

UWU national secretary Tim Kennedy told The Australian during the industrial action: “There will be a booze shortage. If the strike action goes ahead, [despite] contingencies that the company puts in place, there will still be shortages.

“It will still cause a major disruption and it will be on a scale that we actually haven’t seen before if it goes ahead at four sheds at once which is what the notice [of protected industrial action] will say.”

Workers took action after negotiations for a new workplace agreement failed. They want everyone brought up to at least $38 per hour in the first year, with percentage wage increases in following years and a national agreement so that workers are paid the same pay for the same work.

“Workers all over Australia are struggling to survive in the face of more than a decade of wage stagnation compounded by ever rising prices. Wages are lower today than they were a decade ago.”

Strike threatens Christmas drink deliveries for Endeavour Group