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Off-Licences in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Off-Licences Market Research Report | SIC G47.250 | Jun 2017

Closing shop: Enterprise numbers are expected to continue to decline as industry revenue falls

IBISWorld’s Off-Licences market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
Conviviality Retail Plc Conviviality Retail Plc market share
Majestic Wine Warehouse Ltd Majestic Wine Warehouse Ltd market share
Industry Statistics & Market Size
Annual Growth 13-18
Annual Growth 18-23
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Industry Threats & Opportunities
  • Rising competition from supermarkets has significantly affected the industry recently
  • Some operators have diversified their operations to increase their competitiveness
  • Larger firms are expected to acquire complementary businesses to enable economies of scale
  • ... purchase to read more

Industry Analysis & Industry Trends

Off-licences are licensed to sell alcoholic beverages to be consumed off their premises. Industry firms have 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 subdued economic conditions also weighed on performance in the early part of the period. Real disposable income growth has been subdued over much of the past five years, resulting in consumers cutting back on discretionary products such as alcoholic beverages. As their sales and margins collapsed, some off-licences were forced out of the industry... purchase to read more

Industry Report - Industry Investment Chapter

Customer service is important for specialist off-licences as they rely on knowledgeable employees who understand the products being sold to make sales to customers. Even so, wages are expected to account for just 7% of revenue in 2017-18 as most off-licence shops are small and require just a handful of employees. Furthermore, retailers are increasingly reliant on part-time workers, which reduces wage costs. Apart from assisting with sales, employees are required to stock shelves and man the shop floor. Depreciation costs are expected to account for 1.3% of industry revenue. Retailers tend to rent stores, keeping depreciation down, but they incur depreciation costs through storage facilities such as fridges, refrigerated stock rooms and computer payment systems. For every £1.00 s.. purchase to read more

Additional Insights for the Off-Licences Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Off-Licences Industry are

  • Access to highly skilled workforce
  • Production of premium goods/services
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as trade alcohol prices and Real household disposable income in the Off-Licences industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Off-Licences Industry?

    Operators in this industry are specialised retailers licensed to sell alcoholic beverages for consumption off the premises. The industry does not include supermarkets and grocery-focused convenience stores that may also have this licence.

    Industry Products
    WineSpiritsBeer Other alcoholic beveragesNon-alcoholic beveragesFood and snacks
    Industry Activities
    Beer retailingWine retailingSpirits retailingCider retailing

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • trade alcohol prices
  • Real household disposable income
  • Alcohol consumption per capita
  • Demand from pubs and bars
  • Demand from supermarkets
  • Current Performance
  • EU referendum
  • Priced out
  • Pressure mounts
  • Duty calls
  • Prices and profit
  • Chart: Revenue Growth
  • Industry Outlook
  • Operators reposition themselves
  • Competitive pressures
  • Competitive advantages
  • Input prices
  • Table: Off-Licences Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Off-Licences Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Products & Services
  • Wine
  • Spirits
  • Beer
  • Other alcoholic beverages
  • Food and snacks
  • Non-alcoholic beverages
  • Chart: Off-Licences Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • People aged between 50 and 64
  • People aged between 30 and 49
  • People aged between 65 and 74
  • People aged under 30
  • People aged 75 and over
  • Chart: Major Market Segmentation for the Off-Licences Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Off-Licences
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Off-Licences Industry
  • Industry Globalization
    Major Companies
    Conviviality Retail plc
    Majestic Wine Warehouses Ltd
  • Table: Conviviality Retail plc - financial performance
  • Table: Majestic Wine Warehouses Ltd - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Off-Licences Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Off-Licences Industry
  • Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A retailer licensed to sell alcoholic beverages for consumption off its premises.
  • Perry
  • A drink similar to cider that is made by fermenting pears.
  • Sparkling Wine
  • A wine that is fizzy because it contains high levels of carbon dioxide.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Off-Licences:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Off-Licences market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Off-Licences, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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