Liquor outlets with the best perceived value

Liquor outlets with the best perceived value

15-Apr-2014
While the ALDI supermarket chain may not be the biggest alcohol retailer in Australia, its customers are more likely than those of other liquor outlets to believe it offers the best value, according to findings from Australian market research organisation Roy Morgan Research.




Almost three quarters of people who usually bought their booze from ALDI agreed that ALDI ‘has the best value’, a slightly higher proportion than those who usually shopped at Dan Murphy’s (72 per cent) and well ahead of First Choice Liquor (63 per cent) in third place.


“ALDI’s association with value is not new, with customers who mainly shop there consistently ranking it as better value than customers of other supermarkets,” Mr Reid said. “Unlike most major supermarkets, which are adjacent to a related bottle shop, ALDI’s alcohol range is in the supermarket itself, making booze-shopping even quicker and easier for its customers,” he said.


“Large-format liquor stores Dan Murphy’s and First Choice are both extremely competitive on price, with large advertising budgets, particularly for print media and catalogues promoting bulk discounted alcohol,” said Warren Reid, Group Account Director Roy Morgan Research.


Big gap between top three and the rest


The gap between these top three ‘best-value’ retailers and their closest rivals is striking, according to Roy Morgan Research. In fourth place, IGA Liquor was considered to have ‘best value’ by 27 per cent of its customers, while just 25 per cent of people who usually bought their liquor at BWS associated it with best value.


Woolworths Liquor and Coles’ Liquorland not associated with value


Meanwhile, an even lower proportion of Woolworths Liquor and Coles-owned Liquorland customers felt these retailers were best for value.


“Despite also investing heavily in catalogues, Liquorland and Woolworths Liquor stores don’t discount to the same extent, and, consequently, their customers don’t associate them closely with value for money,” Mr Reid said. “Generally located next to their respective supermarkets, Liquorland and Woolworths Liquor are all about convenience,” he said.


Online sales may change customer attitudes


“With most liquor retailers (including ALDI) now selling online, it will be interesting to monitor any changes in customer attitudes, and whether ALDI’s relatively recent online presence affects its reputation as ‘best value’,” Mr Reid said. “What is already certain, though, is both Coles and Woolworths are facing some fierce competition from ALDI,” he said.


For the original article from Australian Food News click here.