Endeavour Group‘s retail sales remained flat in the fiscal first quarter as customers shopped more selectively.

The company’s retail sales totalled $2.54 billion, with BWS and Dan Murphy’s comparable store sales declining 1.1 per cent year over year.

Online sales increased 6.3 per cent and accounted for 9.3 per cent of total retail sales.

The company ended the quarter with 1725 stores after opening three new BWS stores and closing six.

“During the quarter, promotional intensity lifted across the sector as customers became increasingly value conscious,” said Steve Donohue, Endeavour Group MD and CEO.

“In the near term, softer sales and a lower margin sales mix, resulting from both a higher percentage of sales on promotion and consumer downtrading, are expected to impact retail profitability.

Meanwhile, hotel sales grew 2.5 per cent to $567 million. Endeavour Group’s sales minimally rose by 0.5 per cent to $3.11 billion.