Dan Murphy's

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Dan Murphy's
Subsidiary
Industry Retail
Founded 1952 (Woolworths in 1998)
Headquarters Alphington, Victoria,
Australia
Number of locations
200
Key people
Bradley Banducci, CEO
Martin Smith, Director Woolworths Liquor Group. Campbell Stott General Manager Dan Murphy's
Number of employees
4250 approx
Parent Woolworths Limited
Website www.danmurphys.com.au

Dan Murphy's is an Australian liquor supermarket chain owned by Woolworths Limited, with 200 stores across the country. Woolworths also owns BWS, another liquor chain with smaller stores. Dan Murphy's competes principally with Wesfarmers brands 1st Choice Liquor Superstore and Liquorland. As of November 2015, they have 200 stores in Australia. Since 2012, Dan Murphy's has introduced online home delivery and free Click & Collect modes of sales. Dan Murphy's holds more than 50% of online sales of alcohol in Australia.[citation needed]

History[edit]

Daniel Francis Murphy, a winemaker, journalist and founder of the first wine club in Australia, learned the trade working in a liquor store owned by his father Timothy. In 1952, Murphy set up his first liquor store just a few hundred metres away from his father's store.[1] Woolworths Limited took over the five Victorian retail outlets in 1998 with the intention of national expansion.[2] While a success for Woolworths, the business has contributed to the formation of an oligopoly in the Australian liquor market, with concerns about the ability of smaller liquor retailers to compete.

Advertising[edit]

Dan Murphy's regularly advertises in leading newspapers and online. The business offers a "lowest liquor price guarantee",[1] and a main slogan of the company is "We beat every advertised price".

Criticism[edit]

Dan Murphy's pricing strategy sparked an anti-competition problem in 2003, with industry analysts claiming that Woolworths and Coles were seeking to bankrupt rival liquor retailers, mostly by lowering prices of wine.[3] The business has admitted to selling liquor at times below cost to "aggressively drive sales".[4]

Another major concern amongst rival liquor retailers has been Woolworths' aggressive acquisition strategy, buying-up small independent stores to increase market share against main rival Coles Group,[5][6][7] or opening up new stores, placing pressure on existing retailers by taking away sales.[8] In Woolworths' 2006 Annual Report, the company reported 15 new Dan Murphy's stores had opened in the reported financial year, taking the total to 56, and that the company had the sites and licences to have more than 100 stores open within the next two to three years.[9]

References[edit]

  1. ^ a b "Dan Murphy's - The Dan Murphy Story". Dan Murphy's. Retrieved 2016-06-27. 
  2. ^ "How Woolworths Started & Grew" (PDF). Woolworths Limited. 2000-11-12. Archived from the original (PDF) on 2007-09-25. Retrieved 2007-09-20. 
  3. ^ Ashford, Karen (April 2004). "Wine producers on the rack". The Adelaide Review. Retrieved 2007-09-20. 
  4. ^ Greg Hoy (2003-07-13). Inside Business. Power of Coles-Woolies under scrutiny. Australian Broadcasting Corporation. 
  5. ^ Oriel Morrison (2005-06-05). Business Sunday. Bottle shop blues. Channel Nine. 
  6. ^ McMahon, Stephen (2005-10-27). "Woolies swallows Taverner hotels whole". Business (The Age). Retrieved 2007-09-20. 
  7. ^ James Chessell, Justin Norrie (2004-10-27). "Woolies beats Coles in big pub race". Business (The Sydney Morning Herald). Retrieved 2007-09-20. 
  8. ^ Dianne Bain (2006-04-21). Stateline (Western Australia). Supermarket giants taking over hotels and pubs in WA. Australian Broadcasting Corporation. 
  9. ^ Woolworths Limited (2006). "Woolworths Limited Annual Report 2006" (PDF). Archived from the original (PDF) on August 31, 2007. Retrieved 2007-09-20. 

External links[edit]