Netflix-esque personalisation winner for liquor sales

·2-min read

BWS and Dan Murphy's operator Endeavour Group is taking a page out of Netflix's book to drive sales with personalised shopping experiences.

Total groups sales in the third quarter grew 3.7 per cent to $2.8 billion, with retail sales up 1.2 per cent to $2.3 billion and hotel sales rising by 18.5 per cent to $480 million from the previous year, the company reported on Tuesday.

Endeavour chief Steve Donohue said positive customer sentiment has driven growth, with over five million consumers signing up to its Dan Murphy's membership program.

Offers for Dan Murphy's "Lowest Liquor Price Guarantee" are made to customers via email and an app, functioning similar to music service and television content providers like Netflix, Mr Donohue said.

"It is the lifeblood of our profitability," he told analysts on a conference call on Tuesday.

"Some people use it just to get the best price in town and that's all fine.

"Many others we're finding though, are expecting us to be able to make suggestions to them that are relevant to them."

Online sales fell 14 per cent, with Mr Donohue attributing the lack of demand to the cost of home delivery purchases.

"The most expensive way to shop is on-demand delivery," he said.

"They are becoming less popular relative to the benefit that you get as a My Dan's member number, the Dan Murphy's team are actively checking everybody's processing, beating them."

The group also reported the acquisition of five hotels across the country to their 353-strong hotel network.

E&P Financial retail analyst Phillip Kimber noted sales for both retail and hotels were both marginally below expectations but still believed the third-quarter results were "overall solid".

Higher net interest and capital expenditure driven by acquisitions may also disappoint the market, Mr Kimber added.

At 12.50pm AEST, Endeavour Group shares were down 2.1 per cent to $6.62.