By Amy Looker
The Australian Liquor Stores Association (ALSA) has welcomed the formation of ILG Australia, but says establishing a solid consumer offer and playing to its strengths will be key to the new company’s success.
ALSA chief executive officer, Terry Mott, said that Nielsen figures reveal 75 to 80 per cent of liquor purchases are made at convenience outlets versus 20 to 25 per cent of purchases at big box outlets, indicating that customers will forgo lower-prices in favour of convenience and perceived value for money.
"Good, well run liquor stores in convenient locations continue to succeed whether they be independent or owned by larger companies. However, the successful ones build on their own strengths, retain and cater for their existing customers and have an appealing offer to attract new customers," Mott told TheShout.
Mott described the current retail market in Australia as very tough, but said that the establishment of ILG Australia would have a positive impact for its banner group members.
"Congratulations to the ILG team on this important achievement, as independent liquor stores need to be efficient and have a point of difference," he said.
"Increased efficiency in buying and, importantly, if this is combined with a better consumer offer, should be very helpful to ILG Australia."