Dan Murphy's

Last updated

Dan Murphy's
TypeSubsidiary
Industry Retail
Founded1952
Headquarters
Alphington, Victoria, Australia
Number of locations
250
Key people
Agnieszka Pfeiffer-Smith (managing director) [1]
Number of employees
6,000 (approx.)
Parent Endeavour Group
Website danmurphys.com.au

Dan Murphy's is an Australian liquor store owned by Endeavour Group, with over 250 stores across the country. [2] The business was founded in 1952 by winemaker Daniel Francis Murphy. Dan Murphy's competes principally with Coles Group brands First Choice Liquor, Vintage Cellars and Liquorland.

Contents

History

Daniel Francis Murphy, a winemaker, journalist and founder of the first wine club in Australia, learned the trade working in a liquor store owned by his father Timothy Murphy. Following a brief active stint in the RAAF, serving as a Flight Sergeant, [3] Murphy opened his first liquor store in 1952. Located on Prahran's Chapel Street, it was just a few hundred metres away from his father's store. [4] Murphy was heavily involved in the Australian wine industry, and he was a friend to influential winemakers, including Maurice O'Shea and Max Schubert. [5]

After growing his business to five stores across Victoria, Murphy sold his business to Woolworths in 1998. [6] The business has since contributed to the formation of an oligopoly in the Australian liquor market, with concerns about the ability of smaller liquor retailers to compete.

In 2019, Woolworths restructured its alcoholic drinks business to form the Endeavour Group. In June 2021, the Endeavour Group was listed as a separate entity on the Australian Securities Exchange. [7] As well as retail brands BWS, Dan Murphy's and Langton's, it owns Australia's largest portfolio of hotels.

The Dan Murphy's branding is led by a green-and-white illustrated bust of founder Daniel Murphy and a serif logotype. The brand was named the #1 most meaningfully different brand in Australia for 2020 in the Kantar BrandZ ranking.[ citation needed ]

Stores

As of 2021, there are 248 [8] Dan Murphy's stores operating across Australia: 74 in Victoria, 69 in New South Wales, 50 in Queensland, 23 in Western Australia, 18 in South Australia, 5 in the Australian Capital Territory, and 2 in Tasmania. [9]

In addition to its physical stores, Dan Murphy's also operates danmurphys.com.au, which is responsible for more than 50% of online sales of alcohol in Australia. [10]

In 2016, Woolworths opened The Dan Murphy's Cellar. [11] Located in the cellar of Dan Murphy's original Prahran store, The Cellar focusses on boutique and premium liquor products.

Loyalty program

My Dan’s is the name of Dan Murphy's loyalty program. As of July 2023, it had over 5.2 million active members. [12]

Criticism

Dan Murphy's pricing strategy sparked an anti-competition problem in 2003, with industry analysts claiming that Woolworths and Coles were seeking to bankrupt rival liquor retailers, mostly by lowering prices of wine. [13] The business has admitted to selling liquor at times below cost to "aggressively drive sales". [14] The original Daniel Murphy had a similar strategy, with his below-cost marketing being cross-subsidised by fraudulent avoidance of sales tax to the detriment of his competitors, who could not match his prices. [15]

Another major concern amongst rival liquor retailers has been Woolworths' aggressive acquisition strategy, buying up small independent stores to increase market share against main rival Coles Group, [16] [17] [18] or opening up new stores, placing pressure on existing retailers by taking away sales. [19] In Woolworths' 2006 Annual Report, the company reported 15 new Dan Murphy's stores had opened in the reported financial year, taking the total to 56, and that the company had the sites and licences to have more than 100 stores open within the next two to three years. [20]

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References

  1. ↑ Dan Murphy’s new boss has a sharp strategic mind, by Simon Evans, at Australian Financial Review ; published July 1, 2022; retrieved November 11, 2022
  2. ↑ "Find Dan Murphy's Stores Near You | 240+ Stores Across Australia". store.danmurphys.com.au. Retrieved 7 July 2021.
  3. ↑ "Flight Sergeant Francis Daniel Murphy". www.awm.gov.au. Retrieved 7 July 2021.
  4. ↑ "Dan Murphy's – The Dan Murphy Story". Dan Murphy's. Retrieved 27 June 2016.
  5. ↑ Murphy's, Dan. "The Dan Murphy's Story". www.danmurphys.com.au. Retrieved 31 October 2016.
  6. ↑ "Woolworth History" (PDF). Archived from the original on 25 September 2007.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  7. ↑ "Endeavour Drinks Group makes solo debut on ASX – Brews News". 24 June 2021. Archived from the original on 24 June 2021. Retrieved 17 July 2021.
  8. ↑ "Find Dan Murphy's Stores Near You | 240+ Stores Across Australia". store.danmurphys.com.au. Retrieved 7 July 2021.
  9. ↑ "Dan Murphy's | Store Finder | Find you nearest store". www.danmurphys.com.au. Retrieved 31 October 2016.
  10. ↑ "Dan Murphy's online sales surging". NewsComAu. Retrieved 31 October 2016.
  11. ↑ "Dan Murphy's Cellar (Prahran), VIC | Dan Murphy's Stores". www.danmurphys.com.au. Retrieved 31 October 2016.
  12. ↑ Macdonald, Anthony (16 August 2023). "Dan Murphy's shows how to run a loyalty program" . Australian Financial Review. Retrieved 28 September 2023.
  13. ↑ Ashford, Karen (April 2004). "Wine producers on the rack". The Adelaide Review. Archived from the original on 27 September 2007. Retrieved 20 September 2007.
  14. ↑ Greg Hoy (13 July 2003). Inside Business. Australian Broadcasting Corporation. Power of Coles-Woolies under scrutiny.
  15. ↑ "Canberra Times:THE LAW: "Judge told jail 'is a death sentence' "". 29 October 1991.
  16. ↑ Oriel Morrison (5 June 2005). Business Sunday . Channel Nine. Bottle shop blues.
  17. ↑ McMahon, Stephen (27 October 2005). "Woolies swallows Taverner hotels whole". Business. The Age. Retrieved 20 September 2007.
  18. ↑ James Chessell; Justin Norrie (27 October 2004). "Woolies beats Coles in big pub race". The Sydney Morning Herald. Business. Retrieved 20 September 2007.
  19. ↑ Dianne Bain (21 April 2006). "Supermarket giants taking over hotels and pubs in WA". Stateline (Western Australia) . Australian Broadcasting Corporation. Retrieved 20 September 2007.
  20. ↑ Woolworths Limited (2006). "Woolworths Limited Annual Report 2006" (PDF). Archived from the original (PDF) on 31 August 2007. Retrieved 20 September 2007.{{cite journal}}: Cite journal requires |journal= (help)
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