Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/346136
www.beveragedynamics.com July/August 2014 • Beverage Dynamics 15 [ RETAIL PROFILE ] case of new products, especially craft beers and spirits, available only in allocated supply, the new set-up allows the store to present such brands without worrying that they will be lost among giant displays and the bells and whistles once used to drive sales of a single brand. That approach gives the craft or niche brands a greater opportunity to fi nd success with customers without the need to invest in excessive inventory for brands that ultimately don't perform, says Maske. LOCAL DEMOGRAPHICS These three distinct types of operations - two Sherlock's Wine Mer- chants operate in co-location with the high-end cookware outlet while one stands alone, and the two large stores carry spirits as well as wine and beer — makes even more complex the calculation for se- lecting different products for each store. "It's defi nitely different, but we handle it by buying wines in the stores based on the market and the demographics of the area. We feel like it's important within our stores to have an educated manager in each one who keeps up with the trends in each sub market and we give them the fl exibility based on trends they're seeing and experiencing, to make those decisions, overseen by Craig for all the stores," says Bryant. In the stores that have teamed up with The Cook's Warehouse, the two disparate retailers work synergistically. "We tried to marry the food and wine element together in one store, bringing a comprehen- sive wine portfolio together with cookware, cooking and wine classes, tastings and more," says Bryant "It's a pretty neat concept putting the food and wine aspects together, and where it works, it's great." As within many states, Georgia stores are not legally allowed to sell food items in tandem with alcohol, but the cookware connection has been inspired in creating a different sort of shopping experience, and with both cooking classes and wine seminars on-site, the stores have been able to establish brand loyalty with both types of customers. The different sub-markets and formats means each Sherlock's offers a different product mix; the Brookhaven store may be more focused on New World wines while other units might better serve their long-time customers with a wider selection of classic Old World favorites, or more Spanish wines. The Decatur Wine Merchant unit is located in a very trendy area of the city where craft beer and cider are hot, especially among younger consumers, and so the selection there is adjusted accordingly. The number of skus will be roughly the same in the Wine Merchant units, as they are in the two larger stores, says Maske, but each will have a different array of wines, and a different price point skew as well. While Sherlock's has long been known and maintains its rep- utation as THE Atlanta area destination for Grand Cru Bordeaux, rarefi ed Barolo, rare Burgundies and other classic fi ne wines, and the sort of personalized service such wines deserve, trends are as important to them as any other retailer, making specifi c market trends important. For instance, concerning the current red blend boom, a brand like Apothic does well in the larger stores in Cobb County, while brands more aligned with old world blends, Bordeaux or Spanish style, perform better at the three Wine Merchant units. Even the moscato boom, whose epicenter is Atlanta due to the public's fascination with their infamous TV housewives, had a bigger impact in some neighborhoods, whether due to demo- graphics or other factors, and those sorts of wines are doing better in the larger Cobb County stores. With downward price pres- sure on the high-end fi ne wines proudly featured since the chain's inception, the differences in how wines at different price points perform store to store has shifted as well — the Buckhead store in one of the city's most prosperous neighborhoods price points still can support high-end wines, while Cobb County stores are more mass market. In recent years, Sherlock's has modernized and redesigned its two largest stores, updating the layout, displays and the graphics to give the stores a cleaner, fresher appearance.