StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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5 WAYS TO BETTER RETAILING EVERYONE COULD USE A LITTLE ADVICE NOW AND THEN. BY JACK ROBERTIELLO T o an extent not usual in most businesses, beverage alcohol stores are frequently hemmed in by forces outside their control concerning how they can market, merchandise and sell their wares. The size of the store, the specific neighborhood, the spending power of their clientele, the changing competitive landscape, the shifting tastes and habits of their customers, and, of course, the shifting state and local restrictions on how and when they operate, all make even the idea of tweaking their approach to the marketplace seem overwhelming. But continuing to do business the same way today as yesterday may soon leave an operation at a competitive disadvantage, whatever the type of store and customer base. The stuttering economy, the digital revolution, the growing interest among consumers for more information about wine and spirits – all these offer opportunities to make change work to your benefit. KNOW YOUR BUSINESS I Hispanic shoppers, a wide selection of Spanish wines can be appropriate, but often stocking other items are also increasing sales, such as large format handles of Scotches and Cognacs as well as high-end brands of whiskey popular with that demographic that are hard to find at retail. Adjusting that mix due to overall marketplace trends only makes sense when the trends are also something your established customers want. KNOW WHAT YOUR CUSTOMER NEEDS T he late Steve Jobs of Apple was famous for saying that his task wasn't giving his customers what they needed but creating something for them they didn't know they wanted. Most stores do a fine job of keeping tabs on their leading items and categories as well as those that lose popularity or never gain a foothold with their customers, a process that informs and guides future orders. But this method doesn't account for the items your customers would buy, or the way they would use your store, if only they had been given the opportunity. For example, where legal, stores can establish gifting centers for the upcoming holidays, designed to make it easier for customers to make holiday purchases for family and friends. Gathering gift cards, gifting bags, cocktail books and other items that might appeal as a special present for harried shoppers allows you to engage customers once they are in the store and to attract new or infrequent customers who need assistance when selecting beer, wine and spirits gifts. This method might be limited to stores with the right kind of space, location and staff, but even a modest-sized shop can do better in providing solutions for their customers. And something similar can be managed at other times of the year. Picnic or barbecue centers in the summer, for example, where beers, wines and spirits meant for warm weather entertaining are gathered along with fruit, mixers, ice and other entertaining gear and suggestions. State restrictions may not allow that, but creating a smaller high-end spirit section complete with packaging solutions for Father's Day could work in many outlets, regardless of size. t's tempting, given the exuberant sales of, say, moscato wines or flavored vodkas, to go whole hog and buy pallets worth of whatever is surging in the overall U.S. marketplace. But according to smart industry observors, it may be better to turn away potential business than to change your store's direction and philosophy based on a sudden updraft in sales of a particular item. For instance, when taking on spirit brands to discount, it may be better to focus only on quality brands that for some reason or another may be available, rather than a general approach to deep discounting that wouldn't provide items making a good fit with regular customers. As the wine and spirit industry continues to divide into segments – Big Box, wine specialist, etc. – maintaining connection with your core customers is essential. But there may be more than one type of customer at that core, and so crafting a selection that suits each group is essential. For example, in a neighborhood with many acebook, Twitter and the entire world of social media offers applications for stores that are limited only by the imagination. There is a cost, of course, usually to pay a dedicated employee or to account for the time staff members are required to commit to the task, but many retailers are finding social media a great way to build new connections and business. Using social media can generate more excitement about the brands a store carries, can promote tastings and other events, where legal, and likewise build buzz 38 StateWays I www.stateways.com I September/October 2013 GO SOCIAL F