Dan Murphy’s plan to crush rivals

It provides comparison figures indicating that websites run by the top 50 wineries in Australia where customers can purchase online generate monthly traffic of just 3,800 visits, and that the number two player in online liquor retailing traffic - Coles’s 1st Choice business - generates about 25 per cent of the traffic that Dan Murphy’s does.

A 34-page internal document details the plans for the aggressive expansion of Dan Murphy’s online business under a model where beer, wine and spirits producers will have products shipped to customers from their own premises by the national courier business Nexday.

Supermarket and liquor giant Woolworths is in the final stages of a plan to crush rival online liquor retailers with a dramatic expansion of its Dan Murphy’s online business, which already has 46 per cent of the online liquor sales market in Australia.

Dan Murphy’s executives have been making presentations to alcohol producers across Australia, trying to lure them to become part of the new model which is termed the “Drop Ship Vendor’’ approach in the “Range Extension Programme’’ documents.

But Dan Murphy’s outlines that its “Lowest Liquor Price Guarantee’’ will apply right across the range, which in practical terms means that Dan Murphy’s will control the pricing ultimately and takes seriously its price promise to customers that it won’t be undercut.

Dan Murphy’s currently offers 8,000 different product lines across beer, wine and spirits in its online business and depending on the level of take-up by producers across the nation, this could easily expand to beyond 20,000 product lines.

The WFA set up the site in part to help wine producers battle declining profits, which in part have stemmed from the rising power of large liquor retailers and a high Australian dollar which have hurt exports. 2 Aldi to step up challenge to supermarket giants Coles … 4 ‘Phenomenal’ Chinese demand for property set to … 5 Property developer jailed for ‘Titanic’ $100m …

Read more here: SMH


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