Woolworths strike costs $25m in lost sales for Endeavour Group

Endeavour Group was spun out of Woolworths four years ago but still shares some warehousing, and the strike at Woolworths by warehouse workers has cost it $25m in lost sales and disrupted supply to its Dan Murphy’s and BWS stores.

Endeavour Group, the owner of Dan Murphy’s and BWS, has revealed $25m in lost sales because of the Woolworths strike. Picture: Christian Gilles/NewsWire.

Endeavour Group, the drinks and pubs group demerged from Woolworths that owns retail chains Dan Murphy’s and BWS, has revealed that it lost $25m in sales because of the protracted strike at Woolworths warehouses, with the disruptions also causing stock shortages at its stores in Victoria, Tasmania and southern NSW.

The full financial impact at this stage is unknown, Endeavour has warned, as it will depend on the time required to restore inventory levels in stores and distribution centres. Given the importance of the Christmas trading period for its liquor stores, the disruption to its supply chain could further exacerbate the loss of sales as shoppers walk out of stores empty handed.

Despite the strike led by the United Workers Union being resolved last weekend, the bill from the dispute has mushroomed. Woolworths revealed this week that it had lost sales of $140m across the three weeks of strike action and its supermarket earnings shrank by as much as $60m.

In a statement to the ASX on Tuesday, Endeavour said Woolworths provided warehouse services to it, including at two distribution centres in Victoria. Industrial action in relation to the enterprise agreements at these distribution centres between Woolworths and the UWU that began in late November and now was resolved had affected its operations.

“To date, Endeavour estimates that group sales have been adversely impacted by approximately $25m. Sales will continue to be impacted while stores are replenished,” it said.

The full financial impact at this stage was unknown, the company said, as it would depend on the time required to restore inventory levels in its stores and distribution centres.

“The loss of sales from stock-outs may be exacerbated by the timing of the disruption, given the importance of December trading to the group’s first half result.

“This one-off impact was not factored into the guidance that Endeavour Group provided at its first quarter sales update on 11 November 2024.”