A FLURRY of new liquor store openings is one of the key results of 18 months of deregulation, with many new independents appearing in Perth's inner suburban areas competing head-on with the major chains.
A FLURRY of new liquor store openings is one of the key results of 18 months of deregulation, with many new independents appearing in Perth's inner suburban areas competing head-on with the major chains.
But the big chains have not gone away and, as has been anticipated, are adding more of their large-format stores.
In the past 18 months, 16 new liquor stores licences were granted and six new Coles and Woolworths-owed super-sized liquor outlets were opened.
Both trends indicate there may be polarising changes taking place in the marketplace, as the majors use their muscle to go for scale while new independents increasingly look to offer something different.
The May 2007 reforms to the Liquor Control Act lifted tough restrictions on liquor store licence applications, including anti-competitive provisions.
The record number of packaged liquor outlet licences granted since the reforms in areas including Stirling, Belmont and Fremantle contrasts with assurances the industry said it was given at the time of deregulation.
It is understood no applications have been rejected and there are still 12 applications pending.
"We are keeping an eye on that. The trend is that everything is being granted in terms of the granting of liquor stores licenses, that's a concern to us...16 licences is a disturbing trend and we are hoping to raise this issue with the new government," Liquor Store Association executive director Lindsay James said.
"Freeing up the Liquor Control Act was a major initiative and we were of the view that packaged liquor outlets should be more controlled than on-premise licences."
"We need to consider a density factor on how many liquor outlets we need."
Along with the rapidly growing number of independent liquor stores, another trend is the arrival of large-format liquor outlets such as Woolworths-owned Dan Murphy's and Coles-owned 1st Choice Liquor Superstores.
There are currently two Dan Murphy's stores and four 1st Choice in Perth, including three in Perth metro area.
The new trend is putting additional pressure on existing licensees to get bigger and cheaper.
Family-owned liquor outlet Bucks Off Liquor Barn, attached to the newly renovated Innaloo hotel The Botanica, recently extended its retail floor by one-third.
"We had the plan to redevelop for five years, but when we found out that Dan Murphy's was coming to WA, we made sure that our range would match," The Botanica and Bucks Off Liquor Barn part-owner Guy Hogdson said.
"By increasing our size we increased our buying power and the ability to pass on the savings to the punters," he said.
"The small independent retailer is a thing of the past, they've got to cater for a niche boutique market," he said.
Cellarbration Chateau Guilford part-owner Alan Dinneen believes independent stores have a strong future if they manage to differentiate their offer from the Woolworths and Coles-owned stores.
"People with genuine interest in wine come to see us...our business has been steadily growing over the years and had a very strong growth in the past four years," Mr Dinndeen said.
"You need to stay competitive but you don't need the lowest price," he said.
