The Mill launches no-frills liquor store

In a bid to fend off competition from department stores and grocery chains, independent liquor retailer The Mill Liquorsave is set to open what it says is the country's first no frills-style alcohol outlet.

Opening tomorrow, the store in Manukau City will boast discounts of up to 20 per cent on top-selling beer, wine, spirits and pre-mixed cocktails. The trial store could be the first of many around the country.

This is The Mill Liquorsave's second attempt in five months to grab a bigger slice of the $1-billion-plus take-home liquor market. In October it announced the purchase of fellow liquor chain Birds Liquorsave for an undisclosed sum. At the time it said it was seeking critical mass as new players were eyeing the New Zealand liquor market.

Since then, discount retailer The Warehouse has confirmed plans to set up a beer and wine store within one of its Red Sheds. Analysts expect the joint venture will operate in up to half the company's 85 stores. And late last year, the country's two largest supermarket chains, Progressive Enterprises and Foodstuffs, signalled they would build stand-alone liquor stores.

The Mill's general manager Stephen Fromont said the new store, named the Liquor Co, could deliver discounts because its prices were free from distribution and marketing costs.

"We're taking out the middle man. We bring the product in direct from wherever we can, at the right price," said Fromont. "And because of that, we can take a lesser margin."

The chain's buying power allows it to import product from overseas liquor companies directly on to the shop floor.