Dan Murphy’s general manager Campbell Stott.
IS THIS Woolworths’ one shining light?
While Woolworths’ supermarkets arm struggles with weak sales growth compared to rivals Coles and Aldi, online liquor sales through Dan Murphy’s are growing at three times the rate of its 205 physical stores, Fairfax reports.
Dan Murphy’s is already Australia’s biggest online liquor business with around two million customers, commanding more than 50 per cent of the market.
Woolworths’ liquor business, which includes BWS, is worth $8 billion a year.
Dan Murphy’s general manager Campbell Stott said the Connections part of the online store, where suppliers sell direct to customers and must do deliveries themselves, was growing strongly.
“Dan Murphy’s Connections has hit a new milestone, bringing an even bigger range to customers with 4,000 products now available online from 200 Australian suppliers,” he said.
“Dan Murphy’s continues to grow its Connections range, giving customers more choice and producers better exposure.”
When Connections launched in September 2014, then-head of Woolworths Liquor Group Brad Banducci — now Woolworths CEO — said the aim was to have 500 suppliers within 12 to 18 months.
Mr Stott said Connections now stocked more than 4000 products and there was a wider range across wine, beer, spirits and accessories.
“We’re pleased with this organic growth and are keen to quadruple the size of the business over the coming years,” he said.
“Since the launch, we’ve had more than 34,000 Connections orders. Connections allows us to continually expand our range beyond the bricks and mortar of our stores and this is a great thing for customers.”
Adelaide winemaker Natasha Mooney told Fairfax she was initially reluctant to accept the lower-margin despite the exposure on such a bit site, but that sales had been above her expectations.
“They do take a slice but anywhere else you have someone else selling for you they also take a slice,” she said.
