Former Woolworths CEO slams Dan Murphy’s and BWS: 'They've lost their mojo'
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Former Woolworths CEO Roger Corbett has launched a scathing attack on Australia's largest liquor chains, Dan Murphy's and BWS, claiming they have 'lost their mojo' and forgotten their roots as low-price retailers.
Mr Corbett, who led Woolworths from 1999 to 2006, accused the stores' parent company, Endeavour Group, of overspending and losing focus on everyday customers.
'You can’t be an everyday low-price retailer if you’re not an everyday low-cost retailer—that’s fundamental,' Mr Corbett stated in a recent interview.
'Dan Murphy’s but also BWS has completely lost its way.’
'They were category killers and everyday low-price retailers, that’s what drove the expansion, that’s what drove the success,' he said.
Mr Corbett argued that in their early days, Dan Murphy's and BWS operated a high-volume, low-margin model with ‘great prices on the brands you know and trust’. This was the key to their massive expansion across Australia, quickly dominating the liquor market.
However, Mr Corbett believes those days are gone. ‘What's gone wrong? They've lost their mojo,’ he said.
He points to a 30 per cent fall in Endeavour's share price over the past year, which has cost shareholders like the company’s billionaire former director Bruce Mathieson an estimated $50 million.
Mr Corbett also highlights the opening of a luxurious new Dan Murphy's ‘premium concept store’ in Sydney's Martin Place, featuring expensive bottles of wine—between $18,999 to $30,000 Maison LeRoy Nuits-St-Georges 1972 and the 15L Chateau d’Yquem Sauternes 2019.
‘When the [Endeavour] chairman is saying there are no problems, the chairman is in denial or he doesn't know,’ he added.
According to Mr Corbett, Endeavour is now focused on fancy stores and neglecting costs while the everyday customer is being forgotten.
‘There are fundamental problems, and unless they reversed quickly, Dan Murphy's will join the enormous number of retailers who were big yesterday but are not here today,' he declared.
An anonymous Endeavour insider defended the company, saying Mr Corbett’s prediction about Dan Murphy is ‘completely ridiculous, it's still Australia's leading drinks retailer’.
They said that the company still maintain their ‘lowest price guarantee’ and will defeat any competitor’s advertised prices on a similar product.
In recent weeks, Mr Corbett had been vocal about disapproving of Endeavour’s leadership. He has backed calls by his former business partner, Mr Mathieson—the former director of Endeavour—who plans to elect former Woolworths executive Bill Wavish to be on the board.
It is understood, however, that Mr Wavish doesn’t have the necessary up-to-date track record of industry knowledge at the current board.
Endeavour previously reported that the business was disrupted by the pandemic when the number of shoppers buying in stores dropped dramatically. However, their latest results in the 2022-2023 financial year showed an after-tax profit of 6.9 per cent.
You can watch Roger Corbett’s interview here:
What’s your take on Mr Corbett’s prediction, members? Share your thoughts in the comments below!
Mr Corbett, who led Woolworths from 1999 to 2006, accused the stores' parent company, Endeavour Group, of overspending and losing focus on everyday customers.
'You can’t be an everyday low-price retailer if you’re not an everyday low-cost retailer—that’s fundamental,' Mr Corbett stated in a recent interview.
'Dan Murphy’s but also BWS has completely lost its way.’
Roger Corbett, ex-CEO of Woolworths, criticised Dan Murphy’s and BWS. Credit: @OceanHomeLoans/X (Twitter)
'They were category killers and everyday low-price retailers, that’s what drove the expansion, that’s what drove the success,' he said.
Mr Corbett argued that in their early days, Dan Murphy's and BWS operated a high-volume, low-margin model with ‘great prices on the brands you know and trust’. This was the key to their massive expansion across Australia, quickly dominating the liquor market.
However, Mr Corbett believes those days are gone. ‘What's gone wrong? They've lost their mojo,’ he said.
He points to a 30 per cent fall in Endeavour's share price over the past year, which has cost shareholders like the company’s billionaire former director Bruce Mathieson an estimated $50 million.
Mr Corbett also highlights the opening of a luxurious new Dan Murphy's ‘premium concept store’ in Sydney's Martin Place, featuring expensive bottles of wine—between $18,999 to $30,000 Maison LeRoy Nuits-St-Georges 1972 and the 15L Chateau d’Yquem Sauternes 2019.
‘When the [Endeavour] chairman is saying there are no problems, the chairman is in denial or he doesn't know,’ he added.
According to Mr Corbett, Endeavour is now focused on fancy stores and neglecting costs while the everyday customer is being forgotten.
‘There are fundamental problems, and unless they reversed quickly, Dan Murphy's will join the enormous number of retailers who were big yesterday but are not here today,' he declared.
An anonymous Endeavour insider defended the company, saying Mr Corbett’s prediction about Dan Murphy is ‘completely ridiculous, it's still Australia's leading drinks retailer’.
They said that the company still maintain their ‘lowest price guarantee’ and will defeat any competitor’s advertised prices on a similar product.
In recent weeks, Mr Corbett had been vocal about disapproving of Endeavour’s leadership. He has backed calls by his former business partner, Mr Mathieson—the former director of Endeavour—who plans to elect former Woolworths executive Bill Wavish to be on the board.
It is understood, however, that Mr Wavish doesn’t have the necessary up-to-date track record of industry knowledge at the current board.
Endeavour previously reported that the business was disrupted by the pandemic when the number of shoppers buying in stores dropped dramatically. However, their latest results in the 2022-2023 financial year showed an after-tax profit of 6.9 per cent.
You can watch Roger Corbett’s interview here:
What’s your take on Mr Corbett’s prediction, members? Share your thoughts in the comments below!
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