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Dan Murphy's

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Dan Murphy's
Company typeSubsidiary
Founded1878 (Woolworths in 1998)
Headquarters,
Key people
Bradley Banducci, CEO
Martin Smith, Director Woolworths Liquor Group. Campbell Stott General Manager Dan Murphy's
Number of employees
4250 approx
ParentWoolworths Limited
Websitewww.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 First Choice Liquor Superstore and Liquor Emporium. 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

The company had its beginnings in 1878 after Daniel Francis Murphy, a winemaker, journalist, and founder of the first wine club in Australia, began wine retailing in Victoria.[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

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

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

  1. ^ a b "Dan Murphy's - The Dan Murphy Story". Dan Murphy's. Retrieved 2007-09-20.
  2. ^ "How Woolworths Started & Grew" (PDF). Woolworths Limited. 2000-11-12. Archived from the original (PDF) on 2007-09-25. Retrieved 2007-09-20. {{cite journal}}: Cite journal requires |journal= (help)
  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". Inside Business. Australian Broadcasting Corporation. Retrieved 2007-09-20. {{cite episode}}: External link in |transcripturl= (help); Unknown parameter |serieslink= ignored (|series-link= suggested) (help); Unknown parameter |transcripturl= ignored (|transcript-url= suggested) (help)
  5. ^ Oriel Morrison (2005-06-05). "Business Sunday". Channel Nine. Retrieved 2007-09-20. {{cite episode}}: Cite has empty unknown parameter: |serieslink= (help); External link in |transcripturl= (help); Missing or empty |series= (help); Unknown parameter |transcripturl= ignored (|transcript-url= suggested) (help)
  6. ^ McMahon, Stephen (2005-10-27). "Woolies swallows Taverner hotels whole". Business. The Age. Retrieved 2007-09-20.
  7. ^ "Woolies beats Coles in big pub race". Business. The Sydney Morning Herald. 2004-10-27. Retrieved 2007-09-20. {{cite news}}: Unknown parameter |authors= ignored (help)
  8. ^ Dianne Bain (2006-04-21). "Stateline (Western Australia)". Australian Broadcasting Corporation. Retrieved 2007-09-20. {{cite episode}}: Cite has empty unknown parameter: |serieslink= (help); External link in |transcripturl= (help); Missing or empty |series= (help); Unknown parameter |transcripturl= ignored (|transcript-url= suggested) (help)
  9. ^ Woolworths Limited (2006). "Woolworths Limited Annual Report 2006" (PDF). Retrieved 2007-09-20. {{cite journal}}: Cite journal requires |journal= (help) Archived 2007-08-31 at the Wayback Machine