E-commerce boosts sales for Liquor Marketing Group

24 October, 2019 by Deborah Jackson

The Liquor Marketing Group (LMG) expects to have in excess of 100 Bottlemart and Sip’n Save stores participating in its new e-commerce platform ahead of Christmas.

The platform, which includes an app for android and Apple phones, a one-hour delivery option, nominated delivery times and parcel pick-up in 30 minutes, was initially trialed in seven Brisbane stores just over one year ago.

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Today, there are 62 venues live across the country located in all states except for the Northern Territory, and all participating stores are attracting additional sales.

David Gyte, General Manager, LMG Queensland and Harry Brown, told National Liquor News, that the platform has been a huge success and that it will continue to provide endless opportunities for suppliers, LMG’s brands and members into the future.

The e-commerce platform is currently running across Bottlemart and Sip’n Save but Gyte said that a Harry Brown model will also be rolled out ahead of the busy Christmas period, and it will be modified slightly to meet their specific shopper needs, range, price and volume.

All participating stores have seen a positive uplift in sales and the number of orders is increasing each week.

“It’s very interesting to see how shoppers behave across different retail offers and the data we are seeing from e-commerce is exciting,” said Gyte. “Our average basket is more than double the in-store spend, the share of wine has increased five per cent over our average share and the re-order rate from customers is over 50 per cent within the first four weeks.”

More than 70 per cent of shoppers have been turning to the apps rather than the web store, and most of those orders are for delivery, which really speaks to the customer trend of convenience.

“Our e-commerce offer is all about convenience and you can’t get more convenient than using your phone to order. We did a lot of research into other convenience-based offers in the market such as Dominos and Uber Eats and found that you must have a dynamic, simple and reliable app to build shopper trust and satisfaction.

“Delivery has by far been the preferred option with over 95 per cent of orders placed for delivery. When your order is delivered in under an hour it’s understandable that the convenience of delivery is winning.

“The number of regular shoppers we are attracting, and the basket size is continuing to trend upward but the success in regional stores has been amazing. These stores are doing their own deliveries and have had enormous support from their locals, our biggest e-commerce store is in a regional town.”

And so, what is next for LMG’s e-commerce strategy? Aside from the impending Harry Brown e-commerce launch, Gyte says it’s all about scale, marketing, member support and technology as the key drivers for the platform.

“Our offer differentiates our brands from our competitors, and we will continue to innovate to build on our success.

“As online retailing expands, especially in retail liquor, it’s vitally important that independent retailers stay competitive and relevant. Shopper satisfaction through ‘on demand’ delivery solutions will be the key differentiator for these retailers and their ability to push the offer regionally will add to their success. The addition of online is complementary to their bricks and mortar and LMG is proud to support our members to compete in this space with this platform.”