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: https://read.dmtmag.com/i/751263
16 Beverage Dynamics • November/December 2016 www.beveragedynamics.com "Our increases have been in vol- ume and value, as well as average price point as we emphasize more premium and ultra-premium, and basket size is up as well," he says. "Overall, it's a really positive trend and an increase in the value proposition that we think the customers see as well." NEW AND IMPROVED One outstanding example can be found in the west of the state. The PLCB closed an existing store and opened a new Fine Wine & Good Spirits Premium Collection Store in Homestead, Allegheny County, in August 2015. "We had a very antiquated store downtown and relocated in what would be con- sidered Pittsburgh's most commercialized retail center, an opportunity to get next to a Giant Eagle supermarket, a Costco and other stores," Mooney says. By carefully selecting the location of the new store – in this case, The Waterfront, one of the largest and busiest commercial properties in the Pittsburgh region – sales at the new premium store were up almost 221 percent over those at the old standard store during the same time period (August 2015 to March 2016 versus August 2014 to March 2015). While two other stores nearby the Waterfront store did experience sales decreases after the new store opened, another nearby store saw sales increase. The regional mar- ket as a whole saw a net sales increase of 34.3 percent. "The question was, were we shifting or cannibalizing sales from surrounding stores when we would do this, and the answer is we are not," Mooney says. "We're averaging a 5.5 percent total market lift when you look at all the surrounding stores in the affected markets. Yes, we do decrease some sales in some of the smaller stores but the overall market lift is positive and we're very happy about that. Current director of marketing and merchandising Dale Horst notes that, during the last fi ve years, the PLCB stores' overall sales growth has been between 3.5 and 5 percent, during a time when the state's population was fairly stagnant and aging. "We operate within a state of level population and we've been able to grow sales over all each year," he says. "The 'Fine Wine & Good Spirits' brand has allowed that to "Our increases have been in volume and value, as well as average price point as we emphasize more premium and ultra-premium, and basket size is up as well. Overall, it's a really positive trend and an increase in the value proposi- tion that we think the customers see as well." — Charlie Mooney, chief operating offi cer and executive director Left: PLCB Chief Operating Offi cer Charlie Mooney and Director of Marketing and Merchandising Dale Horst stand before the Made in Pennsylvania section of a newly branded store in Hummelstown, Dauphin County.