BIG box liquor stores have been threatening to overwhelm the traditional players for a decade, much as their hardware counterparts have become dominant in that market.
BIG box liquor stores have been threatening to overwhelm the traditional players for a decade, much as their hardware counterparts have become dominant in that market.
However, the shift towards the larger retail format has been slowed by regulatory restrictions on liquor that do not apply to other shops.
But that steady march towards dominance appears to be gaining momentum as Coles and Woolworths seek to grab pole position in this market.
Colliers International associate director of retail leasing, Peter Millard, said the relaxation of competition laws in liquor licensing provided new opportunities for the industry.
“About six to 12 months ago, you could oppose a liquor licence application on the basis of competition,” Mr Millard said.
“That has been taken away now. In simple terms liquor stores were quite strong, because if anyone wanted to apply in their area they could put up a position for it, and were more often successful.
“Now if a tenancy three doors down puts up an application for a liquor licence, they can’t oppose it on competition grounds.”
Mr Millard said the liquor-retailing sector was an active market in Western Australia, with Woolworths subsidiary Dan Murphy’s on a fast expansion plan, and Coles’ First Choice Liquor also establishing a presence in the suburbs.
First Choice Liquor is constructing a liquor store on the former Bentley Hotel site, which is expected to be more than 1,000 square metres, and also has plans for a smaller store at Currambine.
In recent months, First Choice has taken over and refurbished the Jandakot Liquor Store on North Lake Road. It has also established a First Choice Superstore at the Leopold Hotel on Canning Highway in Bicton.
Just up the highway, Dan Murphy’s is understood to have applied for licensing for an 830sqm site in Melville.
Lease Equity managing director Jim Tsagalis said expansion strategies employed by Coles and Woolworths had led to an evolution in the liquor game towards big box retail.
“It’s an evolution, but still, it’s an opportunity for people in the liquor game,” he said.
“There’s been a relaxation of the liquor licensing laws, the boutique operator may not be all things to all people any more, they may decide they’re going to be wine merchants.
“It’s like any business I suspect, it’s very difficult to take (the big boys) on, but if they’re in a particular sliver of the market, they can more than adequately defend their position and grow it.”
