Reality Channel: Liquor Retailing June 2011

Profitability in the liquor retailing industry is very healthy indeed – particularly for the chains. Despite aggressive pricing at times by the major big box formats, promotional margins are easily offset by higher off-promotion margins, private label and scale benefits. Momentum is clearly with the big box format, to the detriment of convenience and specialty stores, particularly independently owned stores, and it is becoming increasingly difficult to compete given price perception and store rollout strategies.

Please contact Jodie Baker & Lorraine Robinson for further information.