Industry Analysis & Industry Trends
Off-licences are licensed to sell alcoholic beverages to be consumed off their premises. The industry has endured turbulent operating conditions over the past decade, with strong and consistent declines in establishment numbers and constrained revenue. Traditional off-licences have struggled under the weight of predatory pricing by supermarkets, while the prolonged effects of the economic downturn also weighed on performance in the early part of the period. Disposable incomes shrank during the downturn and consumers cut back on discretionary products such as alcoholic beverages. As their sales and margins collapsed, many off-licences were forced out of the industry... purchase to read more
Industry Report - Industry Products Chapter
IBISWorld estimates that wine sales make up 33.5% of industry revenue. In recent years, growth in expenditure on wine has far outstripped spending on beer and spirits. Retailers such as Majestic Wine that specialise in the sale of wine have performed strongly over the past five years. However, off-licences have faced increasingly stiff competition from supermarkets in this product category over the same period. Despite intense competition, revenue derived from this product category is expected to increase over 2016-17.
Spirits are estimated to account for 22% of revenue. Sales in this segment have benefited from a reduction in on-licence sales as drinking at home has become more popular. How.. purchase to read more