As more people turn to online liquor outlets for cheaper products, the profitability of these businesses still lag behind those generated by traditional outlets.
Dan Murphy’s said that the shift to premiumisation is happening in the group’s hotels as they can trade outside of lockdown zones.
He said that with the introduction of the order and pay system in pubs, more people are ordering high-end cocktails.
The Dan Murphy’s loyalty program has gained 1.1 million new members in the past year.
The group’s retail arm, which includes the Dan Murphy’s and BWS chains, saw a slight drop in sales compared with a year ago.
The prolonged lock-downs in Sydney and Melbourne affected the revenue of Endeavour’s hotels business. It was down 10 per cent in the third quarter.
Endeavour operates a number of liquor outlets and hotels and clubs. It also has 12,402 gaming machines across its properties.
Retail sales grew at a robust rate of 21 per cent in the second half of 2016, while online sales reached a record high of 305 million.
The Endeavour group’s retail division includes bottle shops and drive-thru operations attached to hotels.
Dan Murphy’s said the group was seeing strong growth in its on-demand delivery services.
While the profitability of e-commerce operations was still behind those of the traditional stores, it was still significantly better than the margins of the traditional stores.
The profitability of the food industry has remained at a lower overall margin than that of traditional retailers.
Staff shortages would also affect the reopening of some hotels in Victoria and NSW. Some employees left the industry. Others were unable to find skilled positions.
To save on your order from First Choice Liquor online, use a First Choice Liquor promo code with your purchase..