These three shopper trends are redefining liquor retail

In this article, Shopper Intelligence’s Australian Client Service Director David Shukri explains three key shifts that are currently reshaping liquor retail, along with some of the ways that brands and retailers should adapt in order to keep in touch:

“‘The pace of change has never been so fast.’ It’s a phrase we’ve heard often, but this time, off-premise liquor feels different. With inflationary pressures squeezing disposable incomes, most liquor players are finding times tough, but it’s more than just the economy playing its cyclical part.

No. What we’re seeing right now is bigger than that. What we’re witnessing is the fundamental dynamics of retail liquor evolving before our very eyes. Whichever vantage point you’re reading this article from, that means redefining how you do things. Redefining value, differentiation, and the future of retail itself.

Based on the enduring Shopper Intelligence survey of more than 20,000 liquor shoppers, here are three key shifts reshaping the liquor channel, and how they translate into business opportunities.

1. Shopper satisfaction is declining, and so is your differentiation

Net shopper satisfaction has dropped to 63%, its lowest point since 2018. This is not just a shopper concern - it’s a business issue. Declining satisfaction erodes loyalty and reduces average spend, particularly in a competitive market where premiumisation is becoming harder to sell.

What’s driving this decline? While satisfaction with price-related measures continues to dip, product-related factors like packaging (-6%) and healthy choices (-5%) fell fastest this year.

On the plus side, there are positives. Premium products (although hard to get into people’s baskets) and new ideas are landing better with shoppers year-on-year. The bottom line is differentiation matters. Shoppers want to know why your brand is unique and whether your products align with their health and sustainability priorities. Businesses that fail to act on these pointers risk losing share to competitors who are better attuned to their customers' needs.

2. Occasion-based shopping rising, category roles shifting

The occasion mindset was once painted as a youth movement, but that can no longer be the assertion. Shoppers of all ages are shifting from everyday drinking and pantry stocking to buying for specific occasions. While economic pressures may drive home-based socialising, this shift is long-term and likely to outlast current conditions.

It would make sense, therefore, to put more pre-store emphasis on occasions shoppers say they’re interested in, making the connection between drink, store, and occasion quite clear. But there’s a challenge because shoppers say pre-store promotions are losing their ability to encourage them to choose one retailer over others. Even excellent in-store delivery has less impact on retailer choice today.

These are foundational category role shifts that we do not see on this scale very often. They call into question current approaches to marketing and merchandising, as well as the underlying misconception that the off-premise shopper wants nothing more than a low price once they set foot in store.

In truth, they raise questions about strategy on several levels. Are your strategies aligning with occasion-based shoppers across product, price, and in-store execution? Are you connecting the dots for shoppers right from website and catalogue, through to shelf? Are you taking the opportunities to drive spend at the fixture and reduce the “cognitive load” while enriching the shopping experience?

3. In-store expectations are growing - and they’re linked to conversion

As pre-store planning declines (-3%), shoppers are increasingly relying on the in-store environment to help them make their decisions. But there’s a problem: shoppers say shelf layouts, signage, and product information are all letting them down.

Shoppers consistently identify these three aspects as key areas for improvement. They want better navigation, easier product comparisons, and clearer signage to help them find the right products quickly. Shoppers love more choice but don’t want the hassle of navigating cluttered options. And at the end of it all, we must bear in mind that these are more than mere operational details. They’re conversion drivers that directly impact sales performance. They add to the shopping experience, reduce friction at the point of decision, and ultimately, increase the likelihood of purchase.

The Strategic Imperative

These trends highlight the scale of the task and the size of the opportunity. Younger generations of shoppers will find a way to satisfy their consumption needs, but it may not be the one you’re offering.

So, for senior leaders, the message is clear. Differentiation, occasion alignment, and in-store execution aren’t optional - they’re fundamental to staying competitive in a fast-changing market.

In a world obsessed with consumers, it’s important to remember one thing - without a shopper, there is no consumer! When sales are under pressure, every element of the store must work harder. There is no choice. It’s do, or dry up!

Will your business adapt to meet these challenges - and turn them into growth opportunities?”

This article was written by David Shukri for Drinks Guide 2025, which will be distributed nationwide soon. If you would like a copy and are not currently on the Drinks Trade/Guide magazine mailing list, get in touch with the team now.