Endeavour Group has given a first quarter trading update, which has shown retail sales remain strong and steady, although slightly down on the prior corresponding period (PCP), hotel sales impacted by lockdown and online sales showing strong growth.

Retail sales dropped 0.2 per cent, but were still at over $2.65bn, and have grown 21.4 per cent when compared to Q1 of F20, which was pre COVID-19. Hotel sales dropped 9.9 per cent to $282m, as lockdowns in both New South Wales and Victoria took their toll.

But online sales were $305m for the first quarter, an increase of 34.4 per cent on the PCP and online penetration was 11.5 per cent, which is a new high. The group said that while a portion of this growth is attributable to the shift to at-home consumption following on-premise closures, online penetration did also grow outside of New South Wales and Victoria.

Endeavour Group Managing Director and CEO, Steve Donohue, said “COVID-19 continued to impact our trading environment during Q1 F22. While retail trading momentum was sustained across the start of the financial year, our hotels business was significantly disrupted by the lockdowns in the key states of Victoria and New South Wales.

“Nationally, approximately 40 per cent of our hotels were closed across the quarter and various trading restrictions were in place across the country.”

He added: “As our hotels across New South Wales and Victoria reopen their doors and welcome back customers, we will continue to focus on offering customers a sociable and safe hotel experience. While we are eagerly anticipating reopening in Victoria, we remain mindful of the broad, ongoing impacts of COVID-19.

“Management of team availability is a challenge both when closing and reopening, with team shortages an industry-wide issue. Additionally, supply chain constraints affecting both global and local networks are limiting our access to some products, particularly imported drinks.

“We are encouraged by the current vaccination rates which should allow us to get back to more normal operations in time for the important festive and summer period.

“Looking beyond the immediate challenges, the Group is well positioned for growth, with a diversified portfolio of quality hotels, strong retail brands and digital assets, supported by a focused and resilient team.”

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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