Amid economic challenges, liquor retailers must optimise ROI through efficient operations, shopper insights, and value-driven strategies to stay competitive.
By Daniel Pizzolato, Group Client Service Manager, Strikeforce
With inflationary pressure still influencing consumer behaviour and discretionary spending in Australia, liquor retailers and manufacturers must find smarter, leaner ways to drive value in-store. As premiumisation slows and cost-conscious shoppers seek value without compromising on experience, maximising return on investment (ROI) across category management, vendor replenishment, and in-store activities is critical.
To unlock greater efficiency and performance in today’s evolving retail liquor landscape, I recommend strategically focusing on these five areas:
1. Leverage data-driven category management
Effective category management begins with understanding how shopper needs are evolving. Australian consumers are increasingly driven by convenience, discovery, and occasion-based buying. Use loyalty data, EPOS, and third-party insights to understand what motivates your customer base – be it mid-week wine shoppers, weekend craft beer browsers, or premium spirits buyers. Use this intelligence to curate assortments that reflect real-time trends, not just past performance.
Optimising shelf space for high-performing SKUs, rationalising slow movers, and localising ranges can directly impact ROI by improving conversion and reducing inventory holding costs.
2. Improve vendor replenishment systems
Inconsistent on-shelf availability remains a key friction point for liquor shoppers. Retailers and suppliers should work more collaboratively to streamline vendor replenishment, ensuring the right stock is in the right store at the right time.
Use predictive analytics to align replenishment with peak periods (e.g. weekends and holidays), adjust for localised demand, and reduce out-of-stocks. Where possible, integrate vendor-managed inventory (VMI) models that automate replenishment based on real-time sales, reducing reliance on manual orders and improving shelf efficiency.
3. Optimise field execution and merchandising
Executional excellence is often where ROI is won or lost. In a competitive liquor aisle, strong merchandising – clear pricing, impactful POS, clean execution – drives conversion and brand visibility.
Maximise the efficiency of your field teams by leveraging retail execution tools with live dashboards, image recognition, and compliance tracking. Prioritise high-traffic outlets and seasonal campaigns for maximum impact, and ensure planograms are followed consistently.
Where possible, align merchandising visits with stock-checks, promotional compliance audits, and staff training – reducing duplication and increasing field ROI.
4. Invest in localised insights
While macro trends are important, localised insights drive sharper execution. For example, suburban stores may see higher RTD sales among younger consumers, while urban outlets may cater more to premium spirits buyers. Granular insights allow retailers and manufacturers to tailor promotions, pricing strategies, and in-store activations accordingly – maximising relevance and ROI.
5. Adapt to economic realities and new shopper behaviours
With more shoppers planning purchases, seeking value bundles, and exploring private label or mid-tier brands, messaging and merchandising must adapt. Showcase value propositions clearly – through bundle offers, ‘buy more, save more’ signage, or cross-merchandising by occasion (e.g. ‘Friday knock-offs’ packs).
Retailers and manufacturers that respond nimbly to these economic and behavioural shifts – while maintaining operational discipline and data-led decision-making – will protect margins and maximise in-store performance.
In an industry as competitive and trend sensitive as liquor, those who blend insights, operational excellence, and shopper empathy will win share and boost ROI.
This article originally appeared in the June-July issue of National Liquor News.
