Endeavour Group has posted a decline in retail sales for the first quarter, but management said there was a sequential improvement during the period.
The group’s retail sales for the 14 weeks ended October 5 fell 1.4 per cent year-on-year to $2.49 billion. This includes the impact of lower specialty sales following the integration of Shorty’s operations into Dan Murphy’s, and the transition of Jimmy Brings to a partnership model with Milkrun.
Within the retail segment, Dan Murphy’s and BWS sales were down 1 per cent to $2.44 billion, with comparable store sales down 1.3 per cent. Specialty sales slid 16 per cent to $57 million.
Despite the decline, management said retail sales momentum improved progressively through the quarter, attributed to the group’s focus on value and price leadership.
Following a subdued performance in July and August, Dan Murphy’s and BWS sales returned to growth in September, supported by plan execution around holidays and targeted offers.
“Targeted and well-executed promotions during the September school holidays and footy finals delivered strong sales; however, consumer spending was relatively subdued outside of key events,” said interim CEO Kate Beattie.
“Pleasingly, our team’s unwavering focus on delivering great value, range and service to our customers drove improvements in customer satisfaction scores across both Dan Murphy’s (+1 pt) and BWS (+4 pts),” she added.
Online sales at the two chains saw a strong 20.9 per cent increase during the quarter and accounted for 10.2 per cent of total sales. The growth was driven by promotional activities and more competitive delivery fees.
Overall, Endeavour Group sales decreased 0.3 per cent to $3.091 billion during the quarter. The hotel segment saw a 4 per cent sales growth to $592 million.
“Looking ahead, the second quarter remains a key trading period for the group, with marquee events including Spring Racing, The Ashes Series, Christmas festivities, New Year and the start of summer holidays,” Beattie said.
“In retail, we’re focused on strengthening our market-leading position for value, range, service and convenience, capitalising on the increased number of occasions to socialise and celebrate,” she added.
