Drained: The growing popularity of big-box liquor stores shuts out small retailers

Players in the Liquor Retailing industry have faced several challenges over the past five years, including declining per capita alcohol consumption, rising health consciousness and competitive pressures. Despite these trends, the industry is expected to grow over the period, largely on the back of increasing consumer demand for higher value, premium beverages. Industry revenue is expected to increase at an annualised 2.4% over the five years through 2017-18, to $11.7 billion. A fall in discretionary incomes is expected to reduce industry revenue growth to 0.6% in 2017-18.The biggest influence on the industry over the past five years has been the growing market dominance of Woolworths and Coles supermarkets, at the expense of independent liquor retailers...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The growing dominance of Woolworths and Coles has had the biggest influence on the industry
  • Oversupply and heavy discounting have reduced the price of wine over the past five years
  • Online liquor sales represent a small but fast-growing segment of the industry
  • Industry Report - Industry Locations Chapter

    The dispersion of industry establishments is generally similar to the spread of Australian population and total expenditure on alcohol by households (from any outlet) with the exception of Queensland. As a result, New South Wales and Victoria account for the highest number of establishments in the industry, representing about 70% of establishments. Deregulation in these two states has also contributed to the relatively high number of liquor retailing outlets. Woolworths and Coles have targeted these two states in rolling out big-box liquor retailing outlets such as Dan Murphy's.Western Australia has a high number of establishments relative to population, with approximately 14% of establishments. Thi...purchase to read more.

    Additional Insights for the Liquor Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Liquor Retailing Industry are

  • Development of a symbiotic relationship with another industry
  • Proximity to key markets
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Total alcohol consumption and Demand from pubs, bars and nightclubs in the Liquor Retailing industry impact industry performance..

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    What's in this report

    What is the Liquor Retailing Industry?

    Liquor retailers sell liquor (including beer, wine, spirits and ready-to-drink mixers) in packaged form (i.e. bottles and cans). Alcohol retailed by the industry is intended for consumption away from liquor store premises. The industry includes both online and bricks-and-mortar retailers.

    Industry Products
  • Wine
  • Beer
  • Bottled spirits
  • RTDs
  • Cider
  • Industry Activities
  • Alcoholic beverage retailing
  • Online liquor retailing
  • Liquor shop operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total alcohol consumption
  • Demand from pubs, bars and nightclubs
  • Real household discretionary income
  • Average weekly hours worked
  • Population aged 18 and older

  • Current Performance
  • Alcohol consumption trends
  • Declining profitability
  • Rising competition
  • Independent retailers fight back
  • Chart: Revenue Growth

  • Industry Outlook
  • Online liquor sales
  • Profitability
  • Rising competition
  • Taxation
  • Table: Liquor Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Liquor Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beer Manufacturing
  • Liquor Wholesaling
  • Spirit Manufacturing
  • Wine Production

  • Products & Services
  • Beer
  • Wine
  • Bottled spirits
  • RTDs
  • Cider
  • Chart: Liquor Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Males aged 18 to 39
  • Males aged 40 and over
  • Females aged 40 and over
  • Females aged 18 to 39
  • Chart: Major Market Segmentation for the Liquor Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Liquor Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Liquor Retailing Industry

  • Industry Globalization
    Woolworths Group Limited, Wesfarmers Limited,
  • Table: Woolworths Group Limited - financial performance
  • Table: Wesfarmers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Liquor Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Liquor Retailing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A retail outlet with floor space several times greater than traditional retailers in the sector, providing for a large amount of merchandise.
  • Off-Premise
  • A retailer that sells alcoholic beverages to be consumed off the premises.
  • On-Premise
  • A retailer that sells alcoholic beverages to be consumed on the premises.
  • Rtd
  • Ready-to-drink mixed spirits.
  • Spirits
  • Distilled alcohol products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Liquor Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Liquor Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Liquor Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Liquor Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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